Celsius appoints Citigroup to advise on possible solutions
According to sources familiar with the situation, Celsius has appointed Citigroup as an “advisor”, but the banking giant will not provide money to Celsius from its balance sheet; instead, Citigroup will advise Celsius on future funding opportunities.
The investment bank also advises Celsius on proposals from competitors such as Nexo. Nexo contacted Celsius earlier this week to purchase its “remaining qualifying assets from Celsius, namely their secured loan portfolio”.
The firm has also hired restructuring lawyers
Celsius lends customer deposits to other users to earn a return. The company was managing $11.8 billion in assets as of May 17, but recently, due to insolvency concerns, it halted withdrawals and transfers between accounts “to stabilize liquidity.” According to the Wallstreet Journal, the firm has already recruited a restructuring adviser from the law firm Akin Gump Strauss Hauer & Feld LLP to ask for help with its current financial problems.
According to the source, Citigroup and Celsius are no strangers. The bank has also advised Celsius on the business of its mining subsidiary and IPO prospects, although these are no longer available. Above all, Celsius is looking for new financing solutions from investors.