Storj enters Chapter 11 with tokenholder equity plan

• Storj has filed for Chapter 11 bankruptcy protection in the United States.
• The company plans to keep operating while restructuring its legacy liabilities.
• Storj aims to let STORJ token holders participate in the equity of the reorganised business.

Storj has filed for Chapter 11 bankruptcy protection as it restructures legacy liabilities while continuing normal business operations.

The company said its proposed reorganisation would allow holders of Storj (CRYPTO:STORJ) tokens to participate in the equity of the restructured business, subject to court approval and legal requirements.

Storj said its decentralised storage network, customer services and token utility will continue to operate as normal throughout the court-supervised process.

The company said the restructuring is intended to resolve liabilities that largely predate its current business strategy rather than liquidate the business.

Chapter 11 allows companies to reorganise their finances while continuing to operate under court supervision.

If approved, the proposal could become an uncommon example of crypto token holders receiving an opportunity to participate in the ownership of a reorganised company.

At the time of reporting, Storj price was $0.06274.