The Singapore court extended Vauld’s protection against investor claims, as the crypto lender did not have time to complete the preparation of an asset restructuring plan within the previously set deadlines.
According to information provided by Vauld to the court, the company continues negotiations with two digital asset managers to agree on the terms of the technical regulation.
Vauld plans to implement an alternative restructuring plan that includes hiring an outside manager to oversee its assets. The intended purpose of the Vauld is for the fund manager to invest its assets and use its own earnings to recoup creditors’ losses.
The crypto company has formed a supervisory committee of the 17 most significant creditors and announced that in the event of its own liquidation, investors will be able to recover from 38% to 49% of the amount of the original debt.
Previously, Vauld and the committee of creditors rejected
takeover bid by Nexo, citing concerns about the company’s financial health and arguing that Nexo does not prioritize the interests of creditors.