Celsius Network, which went bankrupt a while back after the Luna-UST fiasco, still owes $52.8 million in fees to its advisers and lawyers. They worked for Celsius for around 4 months and are requesting payment for the services offered during that time. It is difficult to say whether Celsius would be able to pay back its debt and clear accounts.
Celsius owes a lot in fees
During filing for bankruptcy, Celsius had a lot of firms working for them. The largest bill came from Kirkland & Ellis. They provided their services to Celsius from July to October 2022. The company has billed around $20 million in fees from Celsius. Secondly, we have White & Case LLP billing $10.2 million in fees working in the same time period. This company was representing the creditors of Celsius.
The next two companies also charged hefty fees in return for their services were Alvarez & Marsal North America LLC and M3 Advisory Partners LLP. They charged $6.5 million and $4 million, respectively. These 4 firms make for almost 80% of the total fees that Celsius needs to pay.
We also have 7 other firms that worked for the now-bankrupt lending platform during their liquidation process. They have also requested payments for the services rendered.
The fall of Celsius Network
Celsius’s downfall started when investors started to withdraw a lot of funds, after which they had to halt withdrawals. Then the collapse of the Luna UST token, in which they had a lot of funds invested, was the nail in the coffin. The collapse of such a huge coin not only put Celsius under, but many other companies also collapsed due to the same. Voyager digital is one popular name that also collapsed alongside the Celsius Network. Plus, we saw a lot of other algorithmic stablecoins lose their dollar peg after UST.
The company tried a lot to restore liquidity, but the damage was already done, and they could not do anything. Celsius also cut costs by laying off employees, but that didn’t help much either.
What are your thoughts as Celsius owes $52 million in fees to 11 firms that helped in its liquidation and bankruptcy filing? And do you think they will be able to pay these companies? Let us know in the comments below. And if you found our content informative, share it with your family and friends.
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