Celsius Network LLC is considering issuing a new digital-asset token to repay creditors as part of a proposal to reorganize and exit bankruptcy as a regulated crypto platform, the company said in court yesterday, Bloomberg News reported. Reorganizing Celsius into a publicly-traded company that is properly licensed would bring in more money for creditors than selling hard-to-liquidate assets at today’s depressed prices, company attorney Ross M. Kwasteniet said during a video-court hearing. Celsius has been negotiating with various creditor groups over how to set up the new company and issue a new token to creditors as part of a payout plan, Kwasteniet told US Bankruptcy Judge Martin Glenn, who is in New York. Another troubled crypto platform had created digital assets to cover customer losses, but Celsius is likely the first crypto company to try to issue a new token — which must be blessed by a federal judge — to help buy its way out of bankruptcy. A group of creditors has been pushing Celsius to follow the example set by the Bitfinex exchange, which issued new tokens to customers who lost money due to a hack. In September, a Beijing-based provider of Bitcoin mining-pool services said it would issue tokens to clients equal to the value of various crypto assets that had been frozen.
