Crypto loan firm Vauld, struggling on the verge of bankruptcy, received creditor protection until the end of February.
The declines in the crypto market last year caused many companies to go bankrupt. One of these companies was crypto loan firm Vauld. Vauld stopped attracting customers in July and has since been in talks with competitor Nexo for a potential acquisition. The Singapore Supreme Court initially granted Vauld three months of creditor protection. While the company continues to work on the restructuring, it requested an extension until April 2023, but this period has been given until February for now.
Vauld Receives Creditor Protection Until February
Asia-based crypto firm Vauld has received yet another extension to its legal protection from creditors, albeit with a shorter delay than requested.
The company has until February 28 to explore options to alleviate its financial woes, two sources with direct knowledge of the matter told The Block. The firm’s previous creditor protection expires on January 20. Sources said the final extension was granted today at a hearing in the Singapore High Court in the presence of Judge Aedit Abdullah.
It remains unclear whether Vauld will be able to reach a settlement for creditors with the final extension. One of the two sources stated that if the firm is able to make progress, the judge could approve the extension by April.
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