Celsius Network offers two bold deals to emerge from bankruptcy

It’s been a crisis for a few months at Celsius Network. The crypto platform went bankrupt last year amid the sinking of Terra Labs. Since then, the company has been restructuring under US bankruptcy law. A procedure that could also bear fruit, to the great relief of investors.

Celsius offers two agreements to restart its operations

Celsius Network is fully committed to resolving the difficulties it has been experiencing since its bankruptcy. Significantly impacted by the collapse of Terra Labs in 2022, the platform multiplies the financial arrangements to reimburse investors.

The company’s goal is, of course, a comeback in the crypto industry. It is to this in particular that two agreements proposed by the company on Thursday July 20 should contribute.

According to court documents, the first agreement concerns an unsecured claim of $78.2 billion. An amount that should be used to respond to the charges of fraud and misrepresentation brought against Celsius officials.

This deal plans to increase the funds due to users of the platform by 5%. It also provides that those who opt for a settlement will receive a new claim for 105% of their expected claim.

This, with the consequence, the replacement of all claims for compensation previously submitted. In sum, this agreement would allow users to recover more funds than what is normally due to them.

As for the second agreement, it concerns customers holding assets on the Celsius Earn platform. To these, he proposes to assign compensation in cryptos for the crypto loans they have made. The users concerned would also benefit from rights in the form of shares, in the entity restructured at the end of the bankruptcy procedure.

For the moment, these two agreements are only proposals on which Celsius is counting to get out of business. It would still be necessary for justice to decide on these alternatives. A hearing to this effect should also be held on Thursday, August 10, under the chairmanship of Judge Martin Glenn.

It must be said that through these proposals, Celsius is showing more good faith. A few days ago, the company notably distributed $25 million to Series B holders. Funds raised through the sale of the crypto custodian GK8, acquired by Celsius in 2021.