- Crypto lender Vauld gets creditor protection extension till February 28.
- The extension is comparatively less than the requested April 21.
- Singapore court provided the extension to Vauld at a hearing today.
Vauld, a troubled cryptocurrency lender, has received approval for a creditor extension until February 28. Reports have mentioned that the approval was granted by the Singapore court at a hearing today before Justice Aedit Abdullah. The extension, however, is shorter than the requested date of April 21.
The previous credit extension is set to expire on Friday, and now it will have time until February 28 to look into possible options to stabilize its finances.
Reports stated that the affidavit read:
We are at advanced stages of discussions with potential fund crypto asset fund manager candidates with preliminary indicative terms having been obtained from two shortlisted fund managers
Sources have pinpointed that crypto lender Vauld filed for bankruptcy last year, owing its creditors more than $400 million. Nexo confirmed that it would lend a hand by acquiring Vauld. However, the acquisition didn’t make its way into 2023.
The court also alleged that Nexo wasn’t completely transparent with regard to its financial conditions. The announcement was made by the founder and CEO, Darshan Bathija, who stated that discussions with Nexo have come to a mutual termination.
Reports found out that Vauld has been analyzing measures to stabilize and repay $400 million to its creditors. However, it is unclear about the options that the crypto lender is looking to explore now that the Nexo deal is off the table. According to sources, if Vauld is able to make some progress in terms of reaching a solution, then the court is likely to approve an extension until April.