Babel Finance scores creditor protection extension.
Babel Finance, a global cryptocurrency lending institution serving institutional and high-net-worth investors, has been granted additional time to repay debts.
According to a Bloomberg report shared on April 18th, the Singapore court allegedly extended creditor protection for three more months.
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Singapore's court gave the embattled crypto lending firm until July 21st to settle its debts with creditors like Deribit.
Babel Finance co-founder and former CEO Flex Yang noted that the green light from Singapore's authorities allows Babel to continue pursuing its restructuring plan through a new decentralized finance (DeFi) project named Hope.
Babel's restructuring plan centers around "Babel Recovery Coins," a new token aimed at helping the firm generate revenue to repay as much as $800 million owed to creditors.
Flex, who returned to oversee Babel's restructuring after stepping down as CEO in 2021, shared details of the company's bankruptcy protection hearing in the Singapore High Court on April 17th via an open letter on Twitter.
He emphasized that the future of Babel would be closely tied to the Hope project, stating:
In the coming international political changes, HOPE will be an important tool for us to reconnect the world. <...> We are confident that our new team will continue to use their hope and light to move the new project forward.
Flex launched the Hope DeFi project in mid-March 2023, positioning it as a hybrid of DeFi and centralized finance aimed at providing transparency and security similar to DeFi along with centralized finance-level access.
It is worth noting that Babel halted withdrawals and redemptions in July 2022.
The extended creditor protection granted by the Singapore court offers Babel Finance an opportunity to restructure and repay its debts, with the Hope project playing a pivotal role in the company's future.
