The Singapore High Court has extended creditor protection for Babel Finance for another three months.
Hong Kong-based Babel Finance will have a total of more than one year to repay its creditors. According to Babel’s co-founder and former CEO Flex Yang, creditor protection will last until July 21.
Babel Will Pay Back $800 Million
The court will also allow the firm to continue its restructuring plan through a new decentralized finance (DeFi) project known as Hope. Flex Yang returned to oversee Babel’s restructuring process a few years after leaving the CEO role in 2021. Flex launched the Hope project in March 2023.
Bankrupt crypto loan firm Babel Finance has had more time to repay its creditors like Deribit with this latest development.
Babel’s restructuring plan also includes new tokens called Babel Recovery Coins, which aim to generate returns to repay creditors as much as $800 million.
Making a statement on the subject, former CEO Flex, in his post on Twitter, stated that Babel’s bankruptcy protection was discussed at the Singapore High Court on April 17 and the in-court restructuring procedure was officially started. Noting that Hope will be their main focus in the future, Flex continued: “In the upcoming international political changes, Hope will be an important tool for us to reconnect the world.”
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