Babel Finance Proposes Repayment Plan and Suspension of Protection Order to Creditors

03/06/2023 01:01 • Metaverse Matters • 112 views

On March 6, according to the court documents cited by Bloomberg, the crypto financial service provider Babel Finance proposed to repay $766 million of creditors’ debt through the revenue generated from the casting of “Babel Recovery Coins”. At the same time, Yang Zhou, the sole director of the company, is planning to file a suspension of protection order with the High Court of Singapore, requiring creditors not to take further action against the company for up to six months while seeking the reorganization approval.

Babel Finance plans to launch a new stable currency project to repay more than US $700 million of debt

Interpret the above information:

Babel Finance, a Chinese crypto financial service provider, has proposed a unique solution to repay its $766 million of creditors’ debt – the casting of “Babel Recovery Coins”. This is an innovative approach that uses revenue generated from the sale of the tokens to repay creditors. However, it remains unclear whether this approach will be successful or not.

According to Bloomberg, the crypto financial service provider submitted court documents proposing the repayment plan. As part of the plan, Babel Finance will generate revenue by casting tokens and selling them to repay the creditors’ debt. The plan may not be considered ordinary, but it is one that aligns with the nature of the company’s business activities. Babel Finance deals with cryptocurrency and blockchain activities where tokens and coins are prevalent.

In addition to the repayment plan, Yang Zhou, the sole director of the company, proposed a suspension of protection order with the High Court of Singapore. The order will require creditors not to take any further action against the company for up to six months while seeking the reorganization approval. This is a strategic move that aims to provide Babel Finance with ample time to restructure and recover from its current financial woes.

The repayment plan and suspension of protection order proposed by Babel Finance are signals that the company is committed to resolving its financial issues. These proposals show that the company is willing to take significant steps to repay the creditors’ debt and recover its financial footing.

In conclusion, the proposed repayment plan and suspension of protection order by Babel Finance are significant efforts to steer the company from its current financial predicament. It is crucial to highlight that the company’s plans to repay the debt through the casting of “Babel Recovery Coins” may face legal and regulatory hurdles. However, if successful, this innovative approach will likely lead the way for other companies seeking viable solutions to repay their debt in the crypto and blockchain space.

Keyword: Babel Finance, Repayment Plan, Suspension of Protection Order

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