- Coinflex has released its initial restructuring plan to creditors, pending final approval by stakeholders
- Some shareholders are likely to “get wiped out”
- A new board will manage the revamped platform
Roughly a month after Coinflex filed a restructuring plan in Seychelles, the company has released its initial restructuring plan to creditors as it waits for the final nod from stakeholders. Coinflex wishes to appoint a new board of management to oversee the new entity, restructure the SmartBCH Bridge and give 65% of the company to creditors, although the plan may see those holding ordinary shares “wiped out.”
Employees to Own 15% of the Company
According to a post on its website, Coinflex disclosed that it intends to entrust 15% of the company to its employees under a share option plan. This is meant 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 ordinary and Series A investors are likely to lose their stake in Coinflex, the proposal notes that Series B investors will keep their shares after Coinflex restructuring due to their value in the company.
The proposal further reveals that the SmartBCH Bridge will be replaced with SmartBCH Alliance. The decision comes despite Roger Var, Bitcoin Cash (BCH) owner contributing to Coinflex’s problems. Users will be able to transfer their BCH held in SmartBCH Bridge to SmartBCH Alliance on a ratio of 1:1.
Creditors and Seychelles Court Must Agree
Coinflex creditors will receive designated recovery tokens such as USDC and rvUSD. According to the proposed Coinflex reorganisation plan, the new team to restore the company will include a platform depositor, a SmartBCH representative, a Series B investor, and an independent director.
Before the proposal becomes a final decision, 75% of all creditor votes must be in favour of the suggestions. If the Seychelles court is satisfied with the creditors’ positive nod, Coinflex can start its rebirth.