Failed Cryptocurrency Company Plans to Pay Its Debts By Creating A New Altcoin

in bankruptcy cryptocurrency Credit institution Celsius said in court on Tuesday that it is considering issuing a new digital asset token to reimburse creditors as part of Celsius Network LLC’s proposal to restructure and exit bankruptcy as a regulated crypto platform.

“Creating a New Cryptocurrency Brings More Money Than Selling Our Existing Assets”

Reorganizing Celsius as a properly licensed public company would bring in more money for creditors than selling hard-to-liquid assets at today’s low prices, company attorney Ross M. Kwasteniet said during a video court hearing.

Kwasteniet told U.S. Bankruptcy Judge Martin Glenn in New York that Celsius will provide a new lease on how to set up the new company and provide creditors as part of a payment plan. altcoin He said he was negotiating with various groups of creditors on the issue.

The restructuring plan will first be put to a vote to creditors, including Celsius customers, who have cryptocurrency on the company’s platform. Glenn will consider this vote before deciding whether to approve the proposal.

After Celsius filed for bankruptcy last year, the company received offers for assets and sought to sell itself as a running business. Kwasteniet said the offers for individual assets were “not attractive”.

Kwasteniet said the company will submit court documents this week detailing its plans. Kwasteniet added that any new company will be organized around assets that include tens of thousands of cryptocurrency mining machines, as well as a loan portfolio and other investments.

*Not investment advice.

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