Celsius Insolvency: How The Future Looks Is Celsius in any position

Question

Celsius Insolvency: How The Future Looks Is Celsius in any position

to make even a compromise with creditors? There’s reason to believe they do. For one, Celsius has a lot of locked Ethereum. For two, beyond its core business, the savings and lender has invested in Bitcoin mining. Those are attractive assets moving forward. Another asset is the law firm they just hired.
Akin Gump Strauss Hauer & Feld is considered one of the top lobbying firms in the U.S. It counts among its alumni Jeb Bush’s son, and it’s no surprise they are known for having the ear of Capitol Hill. Not to mention, several current and past senators worked for the firm. Its current roster is likely comprised of many non-Senators who weren’t interested in taking a paycut — AGSHF is top 10 in salary. In short, they are expensive and connected. Those connections are important.
AGSHF is very well-steeped in restructuring plans, though typically from the creditor’s side. In order for Celsius to survive, it will need to have doors opened and credit lines extended to them. We can see this already happening possibly with the rumors that Celsius has tapped Citigroup to help with financing.
Of course, this depends on some big ifs. Anyone who’s been in crypto for long enough knows that many of the hyped partnerships tend to not work out. AGSHF could suggest that liquidating assets and paying off Westcap and the Teacher’s pension fund would be best. Or, perhaps they think Nexo’s offer is generous. These would likely result in investors losing a part or all of their investments. Bankruptcy is still an option, too. But like I said earlier, there are still good options on the table. At this point, it’s all speculation. What’s important is that not all is lost. At least for now.
Plenty of big name companies have come back from predicaments like this. Some even more dire. Take Apple, General Motors, Tesla, Sbarro… They have all survived almost going bankrupt. Though, the latter probably should have stayed bankrupt. Don’t @ me.
Thanks in part to its centralized way of operating, Celsius has a clear advantage over a protocol like Terra. When Terra started falling apart they had nowhere to turn, while Celsius does. That’s the advantage of running a business that’s officially located in the U.S. In times of distress, you can seek remedy through the proper channels. If history tells us anything, the U.S. and its legal system is rather generous to big business. Considering all the evidence it looks to me that there is a realistic path for Celsius to come out of insolvency. But whether Celsius comes out of that insolvency making everyone whole is another matter entirely.

0

18.06.2022

10 ответов

16 просмотров

Shinua

Lex Luna DOGE
If users are not made whole, the company is anyway...

just give us haircuts and call it a day if anything….why drag this outt with a long court battle and pay lawyers hundreds of milllions………..

0

18.06.2022

DINGES Crypto

Shinua
just give us haircuts and call it a day if anythin...

Agreed

0

18.06.2022

Lex Luna DOGE

Shinua
just give us haircuts and call it a day if anythin...

Yes maybe, that would be bankruptcy then

0

18.06.2022

Shinua

the way i see it, its bankruptcy = pay lawyers hundreds of millions and we get haircuts 5 years later or open withdrawals, give us haircuts as we all withdrawal, and then file for bankruptccy anyway

0

18.06.2022

Shinua

Shinua
the way i see it, its bankruptcy = pay lawyers hun...

at leasts with option 2 we avoid having to give lawyers our money and we get it back quickly

0

18.06.2022

Lex Luna DOGE

Shinua
at leasts with option 2 we avoid having to give la...

That would most likely turn out like the big guys get repaid and we get the haircut😄

0

18.06.2022