Celsius proposes issuing a token to repay creditors

Currently undergoing bankruptcy proceedings, Celsius Network is considering issuing a token to repay creditors’ claims. The company representatives told the court, according to Bloomberg.

According to the firm’s lawyers, the proposed plan envisages reorganising Celsius into a licensed public company. This would yield a greater recovery for creditors than selling illiquid assets at current depressed prices, the lawyers noted.

A group of Celsius investors proposed following Bitfinex’s example. The crypto exchange had compensated victims of the 2016 hack in that manner.

Any restructuring plan must be approved by all creditors. The presiding bankruptcy judge, Martin Glenn, promised to weigh the vote results.

The company will disclose more details of the token-issuing restructuring within a week. The updated Celsius business will be built around its existing lending and investment portfolios and mining operations, the lawyers said.

They also noted that cryptocurrency mining activity has become more profitable in recent months.

Earlier in January, the company informed the court of the sale of mining equipment for $1.3 million.

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