Flex Yang, the esteemed founder and former CEO of Babel Finance, has announced that the Singapore court has withheld the company’s proposal for the extension of creditor protection. The court has requested further clarity on the restructuring plan, considering the objections raised by Deribit, a company creditor. Yang remains committed to providing a transparent and comprehensive plan that addresses all concerns and ensures the best possible outcome for all parties involved.
Babel Finance has put forth a well-crafted restructuring plan that aims to adopt innovative approaches to repay its creditors. The plan entails leveraging the revenue generated by a novel decentralized finance project, the “Babel Recovery Coins,” to settle outstanding debts. This strategic move demonstrates the company’s commitment to fulfilling its financial obligations while exploring new avenues for growth and sustainability.
Deribit, the premier exchange for Bitcoin and Ether derivatives trading, has taken a proactive step towards ensuring a successful restructuring plan. In a move that underscores their commitment to transparency and accountability, they have requested the services of Alvarez & Marsal, a renowned global professional services firm, to act as an independent advisor. This decision demonstrates Deribit’s unwavering dedication to providing its clients with the highest service and integrity. With Alvarez & Marsal’s expertise and guidance, Deribit is poised to emerge stronger and more resilient from this restructuring than ever before.
In June 2022, Babel Finance decided to halt withdrawals after Terra Labs’ collapse. The platform cited “unusual liquidity pressures” for this measure.
On March 6, 2023, the lender submitted a request for a moratorium extension, citing the need to provide ample time for Babel Finance’s restructuring efforts to bear fruit. This move aims to prevent creditors from making claims during the specified period.
Notably, Flex recently rejoined Babel Finance to assess the company’s restructuring plans and shed light on a concerning matter. He says the company has over $750 million owed to its creditors. Furthermore, he highlighted that the current moratorium is set to expire on April 5, but the court has granted an interim suspension until the next hearing on April 17. These developments call for immediate attention and action to ensure the company’s financial stability.
