Celsius is now coming up with a strategy to introduce a new token that will pay off its debts and allow the company to escape from bankruptcy.
In accordance with statements submitted by Celsius in court on Tuesday, the cryptocurrency lending company is considering about creating a new digital asset token to pay creditors as part of its plan to restructure and emerge from bankruptcy as an impending authorized cryptocurrency platform.
A Brand-New Celsius Token?
Ross M. Kwasteniet, the business’s attorney, claimed during a video court proceeding that selling assets, which are challenging to liquidate at the current rates available, would generate more revenue for creditors than reforming Celsius into a publicly traded company that is fully permitted.
Creditors, including Celsius clients who have cryptocurrency stored on the company’s platform, would first vote on the restructuring proposal. The decision to approve or reject the proposal would next be made by U.S. Bankruptcy Judge Martin Glenn after considering the outcome of that vote.
According to Kwastenet, the company tried to sell itself as a working corporation while simultaneously looking for offers for its assets after the cryptocurrency lending giant Celsius declared bankruptcy the previous year.
The bids made for the individual assets, however, are not enticing enough. Instead, Celsius has been in talks about creating a new company and giving creditors a new token as part of a settlement with a number of creditor organizations.
The proposals for the individual assets have not been found to be convincing.
Celsius Prepares For A New Beginning
Additionally, Kwasteniet stated that the corporation would deliver court documents later this week that detailed its objectives. Furthermore, he continued, any new company would be structured around its assets, which would include tens of thousands of cryptocurrency mining devices in addition to a portfolio of loans and other investments.
The company’s financial adviser discussed cryptocurrency mining during the hearing, emphasizing how rapidly the industry has expanded recently.
