Celsius Network, a bankrupt crypto-lending platform, has announced plans to rebrand itself as a publicly traded "recovery corporation" to exit bankruptcy and pay some of its creditors. 

Under this proposal, creditors with locked assets above a specific threshold would receive a token called the “Asset Share Token” (AST) that represents the value of their assets. AST holders will be able to either hold the tokens for dividends or sell them on the open market, while remaining customers will receive a one-time distribution in liquid cryptocurrency. 

Although this proposal is yet to be approved by the US Trustee's Office or other regulators, the company also requested approval to liquidate some of its unused mining equipment from its wholly-owned mining subsidiary, Celsius Mining.

Analyst Quicktake: Celsius originally filed for chapter 11 bankruptcy in July following a suspension of customer withdrawals in June. Since then, Celsius has taken several steps to mitigate damage, including laying off a number of its employees and paying over USD 700 million of its loans from Aave , MakerDAO , and Compound . This news comes just a month after Celsius made a claim for USD 7.7 million from Voyager Digital (another recently bankrupt crypto-lending firm), and sold off its self-custody platform, GK8 , for an undisclosed amount.