Babel Finance, a leading crypto financial service provider, has been granted an extension of almost three months for its creditor protection plan by the Singapore court. This comes after the company halted withdrawals in June 2022 due to “unusual liquidity pressures” caused by the FTX debacle. Babel Finance assured its customers of protection and a later resumption of services. In response, the platform filed a moratorium application in the Singapore High Court to extend the period of reimbursement so that the firm could deploy new strategies, including the new decentralized finance project minting called the “Babel Recovery Coins.”
However, objections raised by one of the company’s creditors, Deribit, the leading crypto options exchange, led to the Singapore Court withholding the proposal. The lender was adjured to submit a circumstantial description of the restructuring plan. Today, Flex (NASDAQ:FLEX) Yang, the co-founder of Babel Finance, announced that the Singapore court approved the proposal for creditor protection extension, with the moratorium prolonged until July 21, 2023.
The co-founder of Babel Finance has been absent from the company for the past two years but has recently returned with the purpose of examining the company’s restructuring plan. This plan is focused on paying back the company’s debts, which amount to approximately $800 million.
Babel Finance’s creditor protection plan has been extended until July 21, 2023, by the Singapore court. The financial service provider halted withdrawals in June 2022 due to “unusual liquidity pressures” caused by the FTX debacle. The company later filed a moratorium application in the Singapore High Court to extend the period of reimbursement. This was to allow the firm to deploy new strategies, including the new decentralized finance project minting called the “Babel Recovery Coins.”
However, objections raised by one of the company’s creditors, Deribit, led to the Singapore Court withholding the proposal. The lender was adjured to submit a circumstantial description of the restructuring plan. Today, Flex Yang, the co-founder of Babel Finance, announced that the Singapore court approved the proposal for creditor protection extension, with the moratorium prolonged until July 21, 2023.
The co-founder of Babel Finance has returned to the company after a two-year absence with the purpose of examining the company’s restructuring plan. The plan is focused on paying back the company’s debts, which amount to approximately $800 million.
