Vauld Receives Timely Extension of Creditor Protection to Negotiate Potential Takeoversadmin, · Kategorien: Allgemein
• Crypto winter of 2022 led to the bankruptcy of some firms, including Vauld.
• Vauld received three-month protection from its creditors, but a Singapore court has now extended the creditor protection period till February 28, 2023.
• Vauld has received indications from two digital asset fund managers interested in its assets and requested more time from the court to handle the details of a potential takeover.
The crypto space experienced a tumultuous year in 2022 as the bearish market trend caused the bankruptcy of several firms. One of those was the crypto lending firm Vauld, who found itself in a difficult situation and had to suspend withdrawals on the platform. In response, the company filed for creditor protection from its Singaporean creditors and was initially granted a three-month period.
However, due to the complexity of the negotiations, Vauld requested for an extension of the creditor protection period. To that end, the Singapore High Court approved an additional month for the firm to complete the details of the negotiations. This has allowed Vauld to pursue potential takeover offers from two digital asset fund managers, who have expressed interest in acquiring the remaining Vauld assets.
The creditors have recognized the difficulty of the situation and have allowed Vauld time to properly examine the offers and make a decision that is in their best interests. The negotiations are still ongoing, but the additional month of protection granted by the court has provided the necessary breathing room for Vauld to complete the process.
It remains to be seen how this situation will play out, but the fact that Vauld has been able to receive additional protection from its creditors speaks to the importance of the negotiations and the potential of the offers being made. Although the crypto winter of 2022 has had a devastating impact on the crypto space, Vauld is determined to come out of this situation stronger than ever.