Vauld to have 3 months for restructuring, due diligence by Nexo.
Singapore-based Vauld will have some breathing space after the country’s High Court gave its parent company creditor protection for the next three months. The decision comes as the troubled crypto lending platform seeks acquisition by rival Nexo.The Singapore High Court has granted the parent company of crypto lender Vauld, Defi Payments Ltd.
Justice Aedit Abdullah approved a moratorium until Nov. 7 during a court hearing on Monday. During said period, Vauld’s 147,000 creditors will be barred from taking legal action against it. It had asked for three more months but the judge expressed concerns that that a six-month protection would not ensure “adequate supervision and monitoring.”
Nevertheless, the moratorium can be extended, based on assessment of the firm’s engagement with the creditors, he pointed out. Its progress in that respect will be taken into account during the next hearing. Abdullah asked the firm to form a creditors committee to address the outstanding issues in the meantime.
The cryptocurrency lender is also expected to provide details, including on cash flow and valuation of assets, to its creditors in two weeks’ time and regarding the management of its accounts in eight weeks, the judge added. A series of failures in the crypto lending sector will likely lead to greater regulatory scrutiny, the report remarks. Companies like
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