Court decides Vauld’s moratorium on “debt repayment” only lasts for three months

 174 total views

2022-08-03 19:36:41

Cryptocurrency lending platform Vauld will be left alone by creditors in the near future after the Supreme Court of Singapore decided to suspend repayment earlier this week.

Court decides Vauld’s moratorium on “debt repayment” only lasts for three months

Vauld’s parent company Defi Payment Limited’s initial request for a six-month moratorium was denied by Judge Aedit Abdullah on August 1, but only for three months, citing concerns that the long moratorium was will not have adequate supervision and monitoring from the authorities.

Under the moratorium, Defi Payments will be protected from ad hoc decisions and any legal action directed at the company, including potential adverse actions brought by the company’s 147,000 creditors. Vauld claims the moratorium will provide the necessary time for the company to be “sober” enough to come up with a restructuring plan for the business and deliver better outcomes for its creditors.

“This is an important procedure to allow us to weigh our options carefully.”

Vauld notes that without a hold order, creditors will most likely receive only a fraction of the value of their account. While the order is due to expire on November 7, Judge Abdullah said he would extend it if Vauld was transparent about their progress in paying creditors.

Vauld halted customer withdrawals in early July 2022 for its 800,000 customers, citing unfavorable market conditions and an unprecedented $200 million worth of withdrawals within a short period of time. less than two weeks.

After that, Vauld officially reported a loss of 70 million USD, the CFO also left the company when things got complicated. For now, though, under the protection of the moratorium, Vauld hopes to form a restructuring proposal and explore options for reviving the business.

The Company plans to present to its creditors a restructuring proposal in the form of a detailed Explanatory Statement outlining a recovery estimate and repayment plan. Finally, Defi Payments plans to convene a creditors meeting and hold a vote on whether to approve any possible restructuring. However, there is no specific set date yet.

Faced with the above situation, on July 5, Vauld co-founder Darshan Bathija announced on Twitter that the lending company Nexo had signed a contract specifying, with the desire to be able to buy back Vauld to “rescue” the public. company.

Nexo is currently exclusively conducting due diligence on Vauld. The process began on July 5, and a decision will not be made on whether to bail out Vauld until September 5. After the end of the 60-day period with Nexo without a positive result, Vauld is free to proceed with negotiations with other potential investors.

Synthetic CHK

Maybe you are interested:

Maybe you are interested:

#Court #decides #Vaulds #moratorium #debt #repayment #lasts #months

Related Posts

Leave a Reply

Your email address will not be published.

Close Bitnami banner