Crypto lending platform Vauld has been granted a short period of reprieve from creditors after being given a three-month moratorium by the Singapore High Court.
Its initial request by Vauld’s parent company Defi Payment Limited for a six-month moratorium was reportedly denied by Justice Aedit Abdullah on August 1, citing concerns that a lengthier moratorium “won’t get adequate supervision and monitoring.
Under the moratorium, Defi Payments would be protected from wind-up resolutions, the appointment of a receiver or manager, and any legal proceedings that could be directed toward the company, including any that could be laid out by its 147,000 creditors. Vauld claimed in its updated website FAQ on Monday that the moratorium would provide the breathing room necessary to come up with a restructuring plan for the business and provide a better outcome for its creditors.
Vauld noted that without a moratorium, it would be “highly likely” that creditors would only receive a fraction of their account’s worth. While the new protection order expires on November 7, Judge Abdullah says he will grant an extension if Vauld is transparent about their progress in repaying creditors. The crypto platform has also been given two weeks to form a creditors committee and provide details around cash flow and valuation of assets to creditors.
