Wednesday, June 12, 2024

Singapore High Court grants Vauld 3-month reprieve from creditors.

Vauld can now breathe a sigh of relief as the Singapore High Court granted the bankrupt crypto lending platform a three-month moratorium. Defi Payment Limited, Vauld’s parent company, had initially requested a six-month moratorium which was denied. Justice Aedit Abdullah said a lengthier moratorium will not get adequate supervision and monitoring.

The moratorium protects Defi Payments from wind-up resolution. It safeguards the company from the appointment of a receiver or manager, and any legal proceedings that could be directed toward it, including from its 147,000 creditors. In an update on its website, Vauld said the moratorium would provide the much-needed breathing room necessary to come up with a restructuring plan for the business and to provide a better outcome for its creditors. It described the moratorium as an important procedure to formulate and consider its options carefully.

Moreover, Vauld said that without a moratorium it would be highly likely that creditors would only receive a fraction of their account’s worth. With the new moratorium expiring on November 7, Judge Abdullah will grant the embattled company extension if it is transparent about its progress in repaying the creditors. Vauld also has two weeks in its kitty to form a creditors committee and provide details around cash flow and valuation of assets to creditors. Furthermore, the high court judge recommended Vauld explore the possibility of minimum withdrawals for the remaining customers.

Vauld suspended customer withdrawals in July for its 800,000 customers because of unfavorable market conditions. It also highlighted the $200 million worth of withdrawals in just under two weeks. With the three-month moratorium, Vauld will formulate a restructuring proposal and look at options to revive the business.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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