Celsius Floats plans to end bankruptcy by issuing a new token

Celsius Floats plans to end bankruptcy by issuing a new token

In the insolvency proceedings by Celsius, a lot has happened since the platform originally lost in July.

between allegations of fraud, arguments that customers (or unsecured believers, according to the company) have overwritten their cryptos to flee the former CEO of fleeing the country, and more, Celsius' legal proceedings were a wild drive to say it the least. Now the lender's legal team argues that liquidation would bring less money to the creditors than a restructuring that could be true.

The restructuring process proposed by the legal team of Celsius is strongly based on the printing of a new token to "support the restoration".

plan supposedly proposed by creditors

According to Ross Kwasteniet, a lawyer who represents the crypto loan in his ongoing insolvency proceedings, Celsius' assets would be difficult to liquidate due to the current prices. This situation prompted several undisclosed corporate creditors to propose a restructuring plan on the basis of a temporarily newly shaped recovery note, as Bloomberg reported.

There are some precedents - Coinflex, Bitfinex and others have developed similar ideas. Regardless of the optimistic language that is used by these fighting platforms to gloss over the idea, unfortunately she still creates a sign from nowhere while dancing around the topic that replaces it - lost assets.

According to court documents, Kwastentiet argued that a "listed society that is properly licensed", the revived version of Celsius would ultimately bring more worth the creditors than a liquidation and raised the question of how the company was licensed before its collapse.

Further documents to support the proposal will be submitted next week and presented to the creditors of Celsius for voting before they are officially proposed to the judge who heads the case.

to creditors with considerable claims token

according to Celsiusfacts, an anonymous Twitter account that covers the company's court trial, the tokens would be distributed to creditors with claims of more than $ 5,000.

current news
- #Celsius network strives for a stratified recovery, smaller owners under 5,000 could get all assets to leave.
-Larger owners receive a promise to be promoted, which seems to be presenting the entire value so that they cannot sell if they do not believe in the company or recovery.

- Celsius facts (@Celsiusfacts) 24. January 2023

If the information presented by Celsiusfacts is correct, creditors could withdraw their entire assets from the platform with a wealth of less than $ 5,000. If a creditor demands between $ 5,000 and $ 7.5,000, depending on the amount, 95 % to 100 % of the assets are available for payment. The remaining percentage would be paid out in the recovery token proposed by the lender.

Unfortunately, the proposed plan would not allow any withdrawals for those who have paid more than $ 7.5,000 at Celsius. Unfortunately, these users would not receive compensation apart from recovery.

Further updates of the proposal should be discussed in court next week.

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