Distressed Crypto Firm Vauld Receives More Time to Present a Restructuring Plan (Report)
The Singaporean authorities have reportedly granted Vauld an extended period of creditor protection.
The cryptocurrency lender has until February 28 to introduce a revival plan.
- Vauld is one of the worst affected cryptocurrency entities by the prolonged bear market. It trimmed the size of its team by 30% last summer, reduced its marketing campaigns, and later halted customer withdrawals.
- After failing to ink an acquisition deal with Nexo, the firm filed for protection against creditors in Singapore. The process, much similar to Chapter 11 bankruptcy in the USA, aimed to provide it the necessary “breathing space” to reconstruct the crippled operations.
- Initially, the Singapore High Court ordered the protection to last until November 7, 2022. The authorities later extended that period to January 20, 2023.
- According to a Bloomberg coverage, Vauld obtained another month and has until February 28, 2023, to design a restructuring plan.
- A person familiar with the matter also said the company had received offers from two fund managers who could assume control of the assets stuck on the platform.
- Vauld stated the discussions with those finance players are at an advanced stage.
- Subsequently, the organization assured it has no plans to renew any agreement talks with Nexo. The latter has been in the spotlight recently after the Bulgarian authorities raided its offices as part of a probe into suspected money laundering and tax crimes.
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