Bankrupt Company Celsius Network Proposes to Issue a Token to Pay Off Obligations

Reading Time: < 1 minute

Celsius Network, which has recently filed for bankruptcy, is studying the possibility of issuing its own token for payments on creditors’ claims, Bloomberg has reported citing representatives of the company in court.

The company’s lawyers have said that as part of the proposed plan, Celsius would become a licensed public company. According to them, this would provide a greater amount of reimbursement of obligations than the mere sale of hard-to-liquid assets at current low prices.

It was a group of investors which made the proposal to follow the example of crypto exchange Bitfinex, which in this way compensated the damage suffered by the hack back in 2016.

It must be noted that any reorganization plan must be approved by all creditors. Judge Martin Glenn, who is leading the Celsius case, has said that the results of the vote will be taken into account.