Post
Topic
Board Bitcoin Discussion
Re: Less Worry: Celcius paid off its $114 million Bitcoin-backed loan in 24 hours.
by
Poker Player
on 06/07/2022, 08:08:23 UTC
Why is Celsius paying-off debt?

Of course, lowering the liquidation price for their WBTC. I got you! But, this was important when liquidation price was around 20k.
Now it's <3k, and they're still paying off debt. Anyone knows the reason for this?

How is this seen in the light of a potential bankruptcy? You are not allowed to choose, whom you pay off and whom not, when filing for bankruptcy.
It does not make really sense to me.

I think the main thing was to lower the liquidation price, as you said. In a bankruptcy you can't do anything, the bankruptcy administrator take the remaining assets and liquidate them to pay the liabilities, partially, obviously, and how the payments are allocated and in what amounts depends on the regulations that are executed by the bankruptcy administrator.