New Celsius Token in Development to Repay Creditors

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Celsius Network is looking into a new token issue as a means of paying creditors after its collapse. According to Bloomberg, this new token was part of a Celsius proposal to reformat and run as a newly created platform once bankruptcy procedures are over.

Ross M. Kwasteniet, an attorney for Celsius, testified before Judge Glenn Martin in a video hearing on Tuesday that a fully regulated, publicly listed Celsius would be better able to pay creditors, given the company’s current situation, which includes a low token value and little liquid assets. 

Celsius in Talks with Creditors Over a Relaunch

Kwasteniet informed the court that the business is attempting to reach an agreement with its creditors over how to revive the network and fully recoup their losses.

A “publicly traded company that is properly licensed” would be the replaced and relaunched version, which would supposedly give creditors more money than merely liquidating the business. 

The reformed business would “issue a new token to creditors as part of a payout plan” once creditors and the court authorized it.

The creditors, including Celsius customers, would vote on the proposed reorganization plan. Later, the court would examine the vote but not make a binding judgment based on it. More information will be released later this week, according to Kwasteniet.

CelsiusFacts, an informer on Twitter, also asserted to have discovered this reorganization plan. According to the statement on January 24, Celsius Network plans to go public and use “third-party services” to make sure it conforms with U.S. financial standards. 

Users may recover up to $7,500 or 95% of the amount, whichever is less. The remaining 5%, or payments over $7,500, would be covered by the new token, which would be issued.

Recently, a sale of the set of mining equipments from the cryptocurrency mining branch of the defunct Celsius Network, Celsius Mining, was sold to the most deserving bidder, Touzi Capital LLC, for a price of $1.3 million.

 

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