Crypto lender Celsius Network filed for bankruptcy on July 13, exactly a month after stopping withdrawals and transfers from accounts. As part of the bankruptcy court hearing, Celsius today обелодањују its financial overview and restructuring plan to Judge Martin Glenn of the U.S. Bankruptcy Court for the Southern District of New York.
Restructuring plans reveals steps including negotiating restructuring transaction with stakeholders, fund Bitcoin mining operations through minted bitcoins by its subsidiary, and “asset sales and third-party investment opportunities.”
Moreover, the company offers customers options to either recover cash at a discount or remain invested with their crypto holdings.
Celsius Unveils Restructuring Plan
The beleaguered crypto lender in the bankruptcy proceeding revealed restructuring plans and options for customers to recover their funds. Last week, Celsius disclosed 5.5 милијарди долара обавеза and $4.3 billion worth of assets, with $600 million in CEL token now worth around $170 million.
Celsius plans to negotiate a comprehensive restructuring transaction with stakeholders to preserve business value. Moreover, the company will continue to run its Bitcoin mining operations by using minted Bitcoins to help the firm pay its creditors, while also holding Bitcoin.
Furthermore, the company will also consider “asset sales and third-party investment opportunities” to meet financial obligations.
Celsius will soon announce a plan that will allow customers to recover their funds. However, it might be a discounted cash settlement. Another option is to remain invested in the firm until the restructuring is completed. The plan may also include distributing CEL tokens. The aim is to maximize returns for stakeholders and reorganize the business.
According to the data until July 13, Celsius has more than 1.7 million users in more than 100 countries. It holds nearly all assets on Fireblocks and doesn’t rely on an intermediary to hold the “keys” to its crypto assets. Moreover, the Earn Program has 77% of deposits.
Celsius’ Customers Funds and CEL Token Short Squeeze
After Celsius filed for bankruptcy, the customers were mostly affected as terms and conditions unveil authority over deposits. According to terms and conditions, Celsius customers are unlikely to recover funds if the company becomes bankrupt.
Meanwhile, many customers recovered their losses through community-led “CEL Short Squeeze.” Users were able to intentionally raise CEL token price to a high of $1 and a low of $0.43 in just a day.
Представљени садржај може садржати лично мишљење аутора и подложан је тржишним условима. Истражите тржиште пре него што инвестирате у крипто валуте. Аутор или публикација не сноси никакву одговорност за ваш лични финансијски губитак.
Source: https://coingape.com/celsius-discloses-restructuring-plan-options-to-recover-funds/