Crypto loan firm Vauld has filed for another four months of protection against creditors.
The company needs more time to resolve its financial problems.
Vauld Claims Additional Protection
According to court documents obtained by The Block, the company has applied for four more months of protection against creditors.
An application filed with the Singapore Supreme Court on 18 October seeks additional protection until 7 March 2023. The company’s protection expires on November 7.
In his application, Vauld states that while proposing a restructuring plan for creditors and investors, a four-month extension is necessary to avoid legal action.
The outcome of Nexo’s attempt to acquire Vauld remains unclear.
Darshan Bathija, Vauld co-founder and CEO, said in court documents:
“Even if the deal with Nexo doesn’t happen, I’m sure there will be another entity that would be interested in investing in Vauld”
The company formed a creditor committee earlier this month, according to court documents. The committee consists of 17 creditors whose names are not known.
The first meeting between the committee and Vauld was held on 10 October. The company discussed the terms of the restructuring plan during the meeting and it was stated that if Vauld were liquidated, creditors’ estimated recoveries would be between 38% and 49%.
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