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 disclosed 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 billion in liabilities 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.
