Coinflex Reveals Initial Restructuring Path
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- Coinflex has released its initial restructuring plan to creditors, pending final approval from stakeholders
- Some shareholders are likely to be “wiped out”
- The new board manages the renewed platform
About a month after Coinflex filed a restructuring plan in the Seychelles, the company has released its initial restructuring plan to creditors as it awaits a final nod from stakeholders. Coinflex wants to appoint a new board of directors to oversee the new entity, reorganize the SmartBCH bridge and give 65% of the company to creditors, although the plan is to “wipe out” those holding common stock.
Employees own 15% of the company
According to a message on its website, Coinflex announced that it intends to entrust 15 percent of the company to its employees under the option program. This is to motivate them to revive the cryptocurrency platform back to its former glory, which has been tarnished by a dispute with Roger Ver over an unpaid $84 million debt.
While common and Series A investors will likely lose their stake in Coinflex, the proposal states that Series B investors will retain their shares after Coinflex’s restructuring because of their value in the company.
The proposal further reveals that the SmartBCH Bridge will be replaced by the SmartBCH Alliance. The decision comes despite Roger Var, Bitcoin Cash (BCH) owner contributing to Coinflex’s problems. Users can transfer BCH in SmartBCH Bridge to SmartBCH Alliance on a 1:1 basis.
Creditors and the Seychelles court must agree
Coinflex creditors receive designated recovery tokens such as USDC and rvUSD. According to the proposed restructuring plan of Coinflex, the new team to restore the company will include a depositor to the platform, a representative of SmartBCH, a Series B investor and an independent director.
Before the proposal becomes a final decision, 75% of all creditors’ votes must support the proposals. If the Seychelles court is satisfied with a positive nod from creditors, Coinflex can begin its rebirth.