Coinflex- offer 65% stake to creditors
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After liquidity problems, cryptocurrency exchange CoinFlex announced a restructuring proposal September 21 in response to customer feedback.
In a blog post published on September 21 CoinFlex said the proposal – subject to a vote of creditors and later a court vote – would see creditors own 65% of the business, while team members would receive 15% of the company’s stock under an employee stock option scheme.
The platform stated that if the plan is approved, Series B the investors continue to own the shares of the reorganized company.
Sales Manager Sudhu Arumugam and CoinFlex CEO Mark Lamb said: “As with any restructuring, the majority of shareholders will unfortunately be wiped out.” “This situation is no different; All of the company’s existing common and class A shareholders, including us, lost equity shares.”
The site also announced that it would give creditors a refund make rvUSD, USD coin and equity in return FLEX coin (USDC).
According to the proposal, the SmartBCH Alliance would also be responsible for and utilize the SmartBCH bridge Bitcoin Cash (BCH) “exchanges sBCH Tokens it owns DeFi SmartBCH users on a 1:1 ratio.”
“The SmartBCH Alliance will now act as a creditor to CoinFlex for the amount of BCH it will use to meet these commitments. The Alliance will be treated in the same way as any other creditor, and the status of other existing creditors will not change.”
On September 25th CoinFlex plans to hold a community vote on the planned restructuring, with a 75 percent majority of creditors voting in favor of it. Next, the company will submit the proposal and voting results to the Seychelles courts for final approval.
Arumugam and Lamb stated, “We estimate that this operation could take up to six weeks if everything goes as planned, but this is just a guess.”
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