Troubled crypto lending firm Celsius Network is weighing on whether it should launch a new token to repay debts with creditors while the firm is going through the bankruptcy process, Bloomberg reports.
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Celsius' attorney, Ross M. Kwasteniet, said during a court hearing that reorganizing the firm into some form of a publicly-traded company "would bring in more money for creditors." He added that the firm has been discussing the scheme with creditor groups as part of a payout plan, without going into any detail. Celsius plans to file court papers with details on the matter later this week, Kwasteniet added.
Celsius isn't the first firm, which is seeking salvation in issuing a new token as crypto exchange Bitfinex made the similar step after it had lost money due to a hack. However, the plan is yet to be approved by a federal judge.
Celsius filed for bankruptcy under Chapter 11 of the US Bankruptcy Code in July last year. The company said the restructuring would help it "maximize value for all stakeholders." As per court documents, Celsius owes creditors more than $4.7 billion.
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