• Babel Finance, a crypto lender based in Hong Kong and operating out of Singapore, has been granted an extension of its creditor protection by a Singaporean court.
• The extension is expected to last for approximately three months and will provide the firm with time to address any outstanding financial obligations and avoid insolvency.
• Babel Finance plans to explore new opportunities for growth and sustainability within the crypto lending market through their new decentralized finance project called “Hope”.
Babel Finance Granted Extension of Creditor Protection
Hong-Kong-based crypto lender Babel Finance which operated out of Singapore has been granted an extension of its creditor protection by a Singaporean court, according to Flex Yang, the company’s co-founder. The extension is expected to last for approximately three months, providing the firm with additional time to address any outstanding financial obligations and potentially avoid insolvency.
Restructuring Plan via Decentralized Project ‘Hope’
During the period of the extension, the crypto firm plans to bring into place a restructuring plan via a new decentralized finance project named Hope. This initiative will allow the firm to explore new opportunities for growth and sustainability within the crypto lending market. Deribit, one of Babel Finance’s creditors requested an independent advisor, Alvarez & Marsal, to monitor this plan.
Bearish Crypto Market Brings Liquidity Challenges
During the bearish crypto market in 2022, Babel Finance was one of several crypto lending companies which had undergone significant liquidity challenges. In June 2022, due to unexpected pressures on liquidity; withdrawals and redemptions from its products were forced to be halted. Reports indicate that the company suffered a loss of $280 million from proprietary trades involving customer funds; leaving it indebted up to $800 million towards its creditors.
Babel Recovery Coins
In order repay these debts; Babble Finance have proposed issuing “Babel Recovery Coins” generated by their newly implemented decentralized finance project as revenue which can be used towards settling these debts with their creditors. On April 17th 2021; The High Court initiated formally initiated an in-court restructuring procedure for Babyel Finance as well as monitoring their progress with this plan going forward via Alvarez & Marsal (the independent advisors appointed).
Flex Yang Commits To Hope Project
In recent Twitter posts; Flex Yang (co-founder) expressed his commitment towards progressing with this new decentralized finance project; Hope as part of their restructuring efforts going forward so they can ultimately get back on track financially while still exploring further opportunities within cryptocurrency markets at large!