Vauld Approved Extended Creditor Protection Term To February 28
Key Points:
- Creditors approved Vauld to extend further legal protection until February 28.
- This period was shorter than expected as the company had previously sought to extend it until April 21.
- Crypto firm owes creditors more than $400 million. It is expected that creditors will be able to collect between 38% and 49% of the debt.
Struggling crypto firm Vauld was approved to extend further legal protection until the end of February in a Singapore court, although the time was shorter than expected.
According to The Block, the troubled cryptocurrency company has been approved by the Singapore Court to extend the creditor protection period to February 28. Although the company previously wanted it to be moved to April 21st.
Sources said that the company’s previous creditor protection is set to expire on January 20. The latest extension was granted today in Singapore High Court at a public hearing Aedit Abdullah.
Troubled crypto firm, Vauld, suspended customer withdrawals in July and owed $402 million to creditors, of which $363 million, or 90%, came from deposits of individual retail investors. Meanwhile, the Vauld customer’s money remained stuck. Vauld has been pursuing an alternative restructuring plan, which includes hiring a third-party fund manager to oversee its assets. Vauld’s envisioned ultimate goal is for the fund manager to invest his assets and use the targeted investment returns to repay creditors.
Earlier this month, Vauld formed a creditor committee that included 17 of Vauld’s unidentified creditors, according to court documents. According to the draft discussed earlier, if this firm enters the liquidation process, it is expected that creditors will be able to recover between 38% and 49% of the debt.
Vauld and its Committee of Creditors (COC) had previously rejected Nexo’s proposed takeover, citing concerns about the company’s financial health and arguing that Nexo did not prioritize the interests of its creditors.
As an earlier Coincu News article updated, Nexo was also raided this week by Bulgarian authorities on suspicion of money laundering and tax violations.
It remains to be seen whether Vauld can solve this with its latest extension. If the firm can make progress, the judge could approve the extension until April, said one of the two sources.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
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Vauld Approved Extended Creditor Protection Term To February 28
Key Points:
- Creditors approved Vauld to extend further legal protection until February 28.
- This period was shorter than expected as the company had previously sought to extend it until April 21.
- Crypto firm owes creditors more than $400 million. It is expected that creditors will be able to collect between 38% and 49% of the debt.
Struggling crypto firm Vauld was approved to extend further legal protection until the end of February in a Singapore court, although the time was shorter than expected.
According to The Block, the troubled cryptocurrency company has been approved by the Singapore Court to extend the creditor protection period to February 28. Although the company previously wanted it to be moved to April 21st.
Sources said that the company’s previous creditor protection is set to expire on January 20. The latest extension was granted today in Singapore High Court at a public hearing Aedit Abdullah.
Troubled crypto firm, Vauld, suspended customer withdrawals in July and owed $402 million to creditors, of which $363 million, or 90%, came from deposits of individual retail investors. Meanwhile, the Vauld customer’s money remained stuck. Vauld has been pursuing an alternative restructuring plan, which includes hiring a third-party fund manager to oversee its assets. Vauld’s envisioned ultimate goal is for the fund manager to invest his assets and use the targeted investment returns to repay creditors.
Earlier this month, Vauld formed a creditor committee that included 17 of Vauld’s unidentified creditors, according to court documents. According to the draft discussed earlier, if this firm enters the liquidation process, it is expected that creditors will be able to recover between 38% and 49% of the debt.
Vauld and its Committee of Creditors (COC) had previously rejected Nexo’s proposed takeover, citing concerns about the company’s financial health and arguing that Nexo did not prioritize the interests of its creditors.
As an earlier Coincu News article updated, Nexo was also raided this week by Bulgarian authorities on suspicion of money laundering and tax violations.
It remains to be seen whether Vauld can solve this with its latest extension. If the firm can make progress, the judge could approve the extension until April, said one of the two sources.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Foxy
Coincu News
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