BnkToTheFuture Submits 3 Proposals To Save Celsius From Bankruptcy

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bnkalfuture Proposals

The three new proposals include Celsius restructuring and relaunch options to allow depositors to benefit from any recovery through financial engineering, or potentially co-investing in the platform alongside rich Bitcoin whales.

Another possible option is to settle for an operating plan that allows a new entity and team to rebuild and win back depositors.

Dixon had previously offered to help the network by deploying a similar “financial innovation” used to save cryptocurrency exchange Bitfinex from liquidation in 2016, which he claims was resolved within nine months. This was after the company announced that it lost approximately 120,000 Bitcoin (BTC) in a cybersecurity breach, resulting in a loss of around $72 million in customer funds.

Instead of opting for liquidation procedures, Bitfinex initiated a recovery plan that involved “promises to pay” in the form of BFX tokens to customers, representing the value of money lost in the hack.

The equity debt token issuance was designed to represent $1 of debt per token. These tokens were tradable on the open market and effectively allowed customers to speculate on the recovery of the company. BnkToTheFuture then worked with Bitfinex to allow customers to convert their BFX tokens into shares of the company.

By all accounts, the scheme worked and the victims recovered between 75% and 100% of their funds.

The BnkToTheFuture team has expressed that every attempt must be made to keep depositors whole to maintain shareholder value, adding that it will call a shareholder meeting that “legally cannot be ignored by the Celsius board.” For context, BnkToTheFuture Capital SPC owns over 5% of Celsius’s shares, which it believes gives it the right to call a shareholders’ meeting.

Furthermore, Celsius’s lead investor suggested that after first submitting these proposals, he is now looking to “apply pressure” on the company after “worrying time was running out”.

Stabilization of liquidity problems

Celsius is currently exploring all available options, such as pursuing strategic transactions and restructuring its liabilities to stabilize liquidity and operations.

However, it lost a takeover deal with Sam Bankman-Fried’s cryptocurrency exchange FTX after the company noted a $2 billion hole in Celsius’s balance sheet. FTX had reportedly been in talks with Celsius to provide financial support or acquire the company outright.

Another report claims that Goldman Sachs was allegedly looking to buy the company’s distressed assets “at potentially deep discounts should it file for bankruptcy.”

Earlier this week, Celsius denied reports that CEO Alex Mashinsky had tried to flee the US after the company’s liquidity crisis worsened.

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