Celsius Network, a crypto yield and lending platform that is going through bankruptcy proceedings, has filed a document with the courts reminding borrowers they should repay outstanding loans but these outstanding debts and repayments are not currently being enforced.
Celsius tweeted yesterday that the filed document is to answer questions for account holders with outstanding loans.
For account holders with outstanding loans on the platform, Celsius today filed a statement to help answer your questions and offer greater clarity. https://t.co/GZfmtTtn13
— Celsius (@CelsiusNetwork) October 1, 2022
The document states:
“As a general matter, an individual borrower’s (individually, a “Borrower” and collectively, “Borrowers”) obligation to repay maturing loans on the Debtors’ platform remains in force during these chapter 11 cases. During the course of these chapter 11 cases, however, the Debtors are not seeking to enforce payment obligations on account of outstanding loans, borrowers do not need to repay such loans during these chapter 11 cases, and no interest or penalties will be assessed post-maturity.”
Celsius noted that no interest nor penalties are being assessed post loan maturity.
Some followers questioned how the collateral for loans will be impacted.
Celsius is scheduled to have several court hearings later this month as the Chapter 11 proceedings move forward.