BlocksInform
A lot has happened in the case of Celsius going bankrupt since it went bankrupt in July.
Among the fraud charges, claims that the clients (or unsecured creditors, as per the company) signed on their crypto, The former president's supposed attempts to flee the country, and more, celsius' judicial procedures have been a mad race, for the sake of argument. Now, the lender's legal team claims that winding up would bring less money to creditors than restructuring, which may be true.
However, the restructuring process proposed by Celsius's legal team is strongly based on printing a new token for "recovery of aid."
A plan purportedly put forward by the creditors.
According to Ross Kwasteniet, a lawyer representing the crypto lender in their insolvency case, Celsius's assets would be difficult to liquidate because of current prices. This situation prompted several unnamed company creditors to propose a restructuring plan based on a tentative newly-minted recovery token, as reported by Bloomberg.
There’re some precedents – CoinFLEX, Bitfinex, and others have come up with similar ideas. Unfortunately, no matter what optimistic language these platforms are using to sweeten the idea, it is basically a matter of creating a token from scratch while turning around the topic of what it replaces: the lost goods.
According to court documents, Kwasteniet argued that a “publicly-traded company that is properly licensed” resurrected version of Celsius would ultimately bring more value to creditors than liquidation, begging the question of how the company was licensed before it crashed.
More supporting documentation for the proposal is due next week, and it would be presented to the creditors of celsius for a vote before being formally proposed to the presiding judge.
Fees payable to creditors whose claims are substantial.
CelsiusFacts, an anonymous Twitter account covering the company's lawsuit, said the chips would be distributed to creditors with claims over $5,000.
BREAKING NEWS
– #CelsiusNetwork is looking at having a stratefied recovery smaller holders bellow 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 dont believe in the company or recovery.
— CelsiusFactsNumbers (@CelsiusFacts) January 24, 2023
If CelsiusFacts' information is correct, creditors with less than $5,000 in assets could withdraw all of their assets from the platform. If a creditor asks for between $5,000 and $7,500, 95% to 100% of the asset may be withdrawn, depending on the amount. The remaining percentage would be paid through the creditor's proposed collection token.
Unfortunately, for those with over $7.5,000 deposited with degrees Celsius, the proposed plan would not authorize a withdrawal. Those users, unfortunately, would not be compensated, with the exception of the recovery token.
More updates on the proposal should be discussed at the tribunal next week.
