Celsius Proposes Issuing New Tokens as Part of Restructuring Plan

• The results of the voting would be considered by U.S. Bankruptcy Judge Martin Glenn.
• Celsius plans launching a new company and rewarding creditors with a new token.

Celsius said in court on Tuesday that it is considering issuing a new digital asset token as part of its strategy to restructure and emerge from bankruptcy as a future regulated cryptocurrency platform.

At a video hearing, Celsius’s attorney Ross M. Kwasteniet argued that creditors would be better served by having Celsius reorganized as a publicly traded business that is legally licensed rather than by selling assets, which would be impossible to unload at present prices. 

Rewarding Creditors With New Token

Customers of Celsius who have cryptocurrencies stored on the platform would be considered creditors and would have the first opportunity to vote on any restructuring plan. The results of the voting would be considered by U.S. Bankruptcy Judge Martin Glenn in making his final decision on whether or not to approve the plan.

After declaring bankruptcy last year, the crypto lending giant reportedly sought to sell itself as a going concern while simultaneously soliciting bids on its assets, as reported by Kwasteniet. Moreover, the offers submitted for the various assets, however, are not satisfactory. Instead, Celsius has been holding talks with several creditor groups about launching a new company and rewarding creditors with a new token.

More importantly, Kwasteniet said the company will file court filings later this week that laid out their plans in detail. In addition, he said that the foundation of any new enterprise would be its assets, which would include not just tens of thousands of crypto mining rigs, but also a portfolio of loans and other investments.

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