It has been a tough year for Celsius. The company is teetering on the brink, and it may well be that Wall Street lawyers will be able to talk them into filing Chapter 11 bankruptcy proceedings with their advice.
It remains to be seen how this will resolve itself. Still, according to an article on Monday, the executives of Celsius are resisting the advice given. Their preferred option is buying more time to attempt to resolve any liquidity issues that forced them into hurriedly reorganizing.
If the company is able to do this with some success, then far more of investors’ wealth stuck on their platform can be released back into investors’ pockets. This would lead us towards an improved outcome for both parties involved.
This is similar to the recovery plan put forward by Simon Dixon and Bank of The Future. In Dixon’s recent tweet, he said this recovery plan aims to get as much value back for the investors as possible.
There are reports that people with knowledge of the situation advise investors to show their support for avoiding bankruptcy by selecting “HODL mode” from within the Celsius app.
Celsius is legally bound not to recommend or suggest anything to its investors, so their hands are tied. If many investors suddenly select the HODL mode function in their Celsius app, it would send a message to those concerned with trying to shut down this company that they do not have enough support for such an action and will display strength through numbers as well.
Investors are in for a raw deal if the bankruptcy goes ahead. They’ll have to compete with other creditors and hope that they can get their money back from any remaining assets, which might be auctioned off or sold at public sale without giving them any say-so about how much is given away during these auctions (or even when).
