- The Singapore court extended the creditor protection plan of Babel Finance.
- Babel Finance filed a moratorium application to extend the reimbursement period, implementing new strategies.
- Though the proposal was withheld by the court earlier, now the moratorium period is extended to July 21.
The latest reports revealed that the creditor protection plan proposed by the top comprehensive crypto financial service provider Babel Finance had been extended by the Singapore court for almost three months.
Previously, in June 2022, regarding some “unusual liquidity pressures” as a consequence of the FTX debacle, Babel Finance halted withdrawals, assuring consumer protection and a later resumption of the services. The official announcement read as follows:
Due to the current situation, Babel Finance is facing unusual liquidity pressures… During this period, redemptions and withdrawals from Babel Finance products will be temporarily suspended, and the resumption of normal service be notified separately. We apologize sincerely for any inconvenience caused.
Subsequently, the platform filed a moratorium application in the Singapore High Court to extend the period of reimbursement so that the firm could deploy new strategies, including the new decentralized finance project minting called the “Babel Recovery Coins.”
However, considering the objections raised by one of the creditors of Babel Finance, Deribit, the leading crypto options exchange, the Singapore Court withheld the proposal, adjuring the lender to submit a circumstantial description of the restructuring plan.
Today, Flex Yang, the co-founder of Babel Finance, declared that the Singapore court approved the proposal for creditor protection extension, with the moratorium prolonged until July 21, 2023.
The co-founder of Babel Finance has been absent from the company for the past two years but has recently returned with the purpose of examining the company’s restructuring plan. This plan is focused on paying back the company’s debts, which amount to approximately $800 million.