Lawyers for Celsius Network said Tuesday that the bankrupt crypto lender is planning to reinvent itself as a new, publicly traded “recovery corporation” in order to exit the bankruptcy process – something they said could happen in “months.”
Under the newly unveiled plan – which has yet to receive approval from the U.S. Trustees Office or other regulators – creditors with locked assets above a certain threshold would receive a token, called the Asset Share Token (AST), that reflects the value of their assets. AST holders would either be able to hold their tokens, which lawyers said would entitle them to dividends over time, or sell them on the open market.
The rest of the platform’s customers, which Celsius’ lawyers estimated would be between 60% to 70% of its customer base, would receive a one-time distribution in liquid crypto.
Celsius’ lawyers did not say what the threshold for receiving a payout would be. Kwastaniet said the company was still in discussions over the dollar amount of the threshold with the Unsecured Creditors Committee (UCC).