The Singapore High Court has extended the creditor protection period for crypto lender Vauld to Feb. 28, as the firm has yet to come up with a revival plan, two persons familiar with the matter told The Block.
See related article: Creditors take hostile action as crypto firm Vauld seeks bankruptcy
- This gives Vauld until Feb. 28 to explore options to ease its financial troubles, despite having sought protection until Apr. 21.
- Vauld froze customer withdrawals in July before starting to explore restructuring plans, including offers from two crypto fund managers to take over the tokens stuck on its platform.
- Vauld’s court affidavit stated that the discussions with the fund managers are at an advanced stage, according to the unnamed sources.
- The affidavit also stated that Vauld will not enter any agreements with Nexo Capital, which is attempting to acquire the company.
- Court documents from July showed that Vauld owed creditors US$402 million, with 90% of the debt owed to individual investors.
See related article: Singapore court gives Vauld parent three-month protection from creditors