Crypto Lender Vauld Applied For Extended Protection Against Creditors
Troubled According to court records obtained by The Block, Asian crypto lender Vauld needs more time to iron out its financial troubles and has filed for further four months of creditor protection.
The application, filed in the Singapore High Court on October 18, seeks extra protection until March 7, 2023. Vauld’s current creditor protection ends on November 7.
The latest application comes only a few days after Nexo, a Vauld competitor and possible purchaser, extended its due diligence period for as long as needed.
According to court filings, Vauld needs the four-month delay to avoid legal proceedings while it submits a restructuring plan to its creditors and any possible investors. Discussions over Nexo’s prospective purchase are still underway. Darshan Bathija, co-founder and CEO of the company, stated in court records.
“Even if the deal with Nexo does not materialize, I am confident that there would be another party that would be interested in a potential investment in the Vauld platform.
We have also received support from significant creditors that Defi Payments’ business ‘remains attractive’ and would likely receive ‘further offers for acquisition’.” (Defi Payments is the Singapore entity of Vauld involved in the court proceedings)
The company created a creditors’ committee earlier this month. According to the documents, the committee is made up of 17 unnamed creditors.
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