Celsius may issue a new token to compensate creditors

Celsius may issue a new token to compensate creditors

25.01.2023 09:18 (Updated 25.01.2023 10:01)
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by Maksym Prykhodko
2 min read

One of the reorganization options for Celsius would be to become a publicly traded U.S. regulated company. Celsius is looking to issue a new token to repay its debt to creditors, frozen on the platform since June last year.

According to a Jan. 24 Bloomberg report, citing the recent video recording of the bankruptcy hearing, Celsius’ attorney Ross M. Kwasteniet said the company is currently negotiating with its creditors for appropriate compensation. Celsius is exploring the option of not liquidating the company but relaunching it and forming a “publicly traded company that is properly licensed.” The new version of Ceisius will reportedly return more money to investors, and part of that plan is the creation of a new debt token.

Related: Celsius extends claims deadline

A Twitter account closely following Ceisius’ bankruptcy proceedings, @CelsiusFacts, confirmed the company’s plans to exit bankruptcy as a publicly traded company, adding that the company had again extended the repayment deadline:

Celsius is looking at having a stratified recovery, smaller holders below 5k might get all assets to leave. Larger holders will get a debt token that seems to represent all the value, so you can sell if you don’t believe in the company or recovery.

Related: Earn belongs to Celsius 

@CelsiusFacts adds that users of Celsius.Custody will be able to cash out up to 94% of their claims, with a maximum withdrawal limit of $7,500. Assets in custody will be distributed by the company, and all fees associated with the withdrawal process will be paid at a user’s expense. In addition, all cryptocurrencies sent to the company after submitting a claim will be returned to the sender.

According to the court schedule for the case, an “omnibus hearing” was scheduled for January 24, and the court has published the agenda for the hearing in advance. It is possible that this hearing was the source of the Bloomberg and CelsiusFacts reports.

Author

  • Maksym has denied the existence of crypto as an asset for 3 years when he was working with standard financial instruments. Became Head of Treasury. Won the best bank employee award and left the bank for cryptocurrency exchange the next day. Got a second university degree, but that didn’t stop him from studying finance yet. Combines fiat and crypto experience to be as objective as possible in general matters. His dream is to be interviewed by Bloomberg.

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