Distressed Crypto Firm Vauld Given New Deadline for Restructuring Plan as Customer Funds Remain Frozen: Report
Embattled crypto lender Vauld now has until February 28th to come up with a restructuring plan without getting hounded by claims from creditors.
The company is initially set to submit its revival plan on January 20th, but Bloomberg reports that the firm successfully secured the approval of a Singapore Court to extend the deadline.
A person familiar with the matter says that Vauld received bids from two digital-asset fund managers interested to take over the management of the crypto assets on its platform. The firm has informed the court in an affidavit that discussions with the fund managers are already at an advanced stage.
Crypto lending rival Nexo Capital was also interested in buying Vauld, which sought creditor protection after halting customer withdrawals in July as a result of the market downturn. The negotiations started in July but the planned acquisition did not push through. Vauld says in its affidavit that it will not proceed with any deal with Nexo.
Said CEO Darshan Bathija in an email to creditors in December, according to The Block,
“We have since sought a mutual agreement with Nexo to terminate the existing exclusivity arrangements and we are continuing our active engagement with the shortlisted fund managers in developing a viable strategy that would best serve the creditors’ interests.”
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Author: Rhodilee Jean Dolor
