Crypto Lender Babel Seeks Creditor Protection Extension, But Faces Roadblocks

Are you keeping up with the latest news in the world of cryptocurrency lending? It looks like one of the biggest players, Babel, is in hot water. The company recently filed for creditor protection extension, but it seems they’re facing some significant roadblocks along the way. In this blog post, we’ll dive into what’s been happening with Babel and what this could mean for other crypto lenders moving forward. So buckle up and get ready to learn about the twists and turns in this intriguing industry!

Who is Babel?

Babel is a crypto lending platform that facilitates the borrowing and lending of digital assets. The company is based in Singapore and was founded in 2018.

Babel allows users to collateralize their digital assets and borrow against them. The platform currently supports the following digital assets: Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Ripple, and EOS.

The company has been facing financial difficulties due to the bear market conditions in the cryptocurrency industry. Babel has been seeking creditor protection from its creditors since March 2019.

The company’s primary obstacle in obtaining the extension has been its inability to secure funding from investors. Babel has been unsuccessful in its attempts to raise additional capital from both traditional and cryptocurrency-focused investors.

What is crypto lending?

Crypto lending is a process whereby individuals and businesses can borrow funds against their cryptocurrency holdings. The borrower typically posts collateral in the form of digital tokens, and the loan is extended in fiat currency. Crypto lending platforms have become popular in recent years as a way to access liquidity without having to sell one’s crypto assets.

Babel, a crypto lender based in Hong Kong, is currently seeking creditor protection from its creditors. The company has been facing roadblocks, however, as it tries to negotiate with its creditors.

What is creditor protection?

Crypto Lender Babel Seeks Creditor Protection Extension, But Faces Roadblocks

What is creditor protection?

Creditor protection is a legal mechanism that can shield individuals and businesses from having their assets seized by creditors. In the case of individuals, this typically takes the form of bankruptcy protection. For businesses, creditor protection can come in the form of limited liability status or other corporate structures that protect company assets from being used to satisfy debts.

Babel, a crypto lending startup, is currently seeking an extension of its creditor protection in the wake of mounting financial troubles. The company has been hit hard by the downturn in the cryptocurrency market, and has been struggling to repay its loans. Earlier this year, Babel filed for creditor protection with a Canadian court, and has since been working with a court-appointed monitor to restructure its business and repay its debts.

However, Babel’s creditors are now objecting to the company’s request for a further extension of its creditor protection, arguing that the company has not made sufficient progress in repaying its debts. The creditors are also concerned that Babel may be attempting to use the extension as a way to avoid repayment altogether.

The court will ultimately decide whether or not to grant Babel’s request for an extension of its creditor protection. However, it is clear that the company faces an uphill battle in convincing its creditors that it is worth giving them more time.

Why does Babel need an extension?

In a recent blog post, crypto lending startup Babel announced that it was seeking a creditor protection extension in order to keep its business afloat. However, the company faces some roadblocks in this regard.

One of the biggest problems that Babel is facing is the fact that many of its creditors are now asking for their money back. This is because the value of Babel’s collateral, which is mostly made up of Bitcoin and Ethereum, has fallen sharply in recent months. As a result, these creditors are worried that they may not be able to recoup their investment if Babel is forced to sell off its assets at current prices.

Another issue that Babel is facing is the fact that its extension request must be approved by a majority of its creditors. However, as many of these creditors are now located in different countries, this could prove to be difficult.

Despite these challenges, Babel remains hopeful that it will be able to obtain the extension it needs in order to continue operating. The company has already begun negotiations with some of its creditors and is confident that it can reach an agreement with them.

What are the roadblocks?

Babel, a crypto lending platform, is seeking an extension of its creditor protection in Switzerland. However, the company faces several roadblocks that could prevent it from obtaining the extension.

First, Babel has yet to submit a concrete plan for how it will repay its creditors. The current plan is simply to extend the terms of the loan, which creditors are unlikely to accept. Second, Babel’s primary asset is cryptocurrency, which is notoriously volatile and difficult to value. This makes it difficult for creditors to assess the company’s ability to repay its debts. Finally, Babel has been slow to provide information to creditors and has failed to keep them updated on its progress. This lack of transparency is likely to hinder any efforts to secure an extension of creditor protection.

Conclusion

Crypto lender Babel’s attempts to extend creditor protection have been met with several roadblocks recently. As the crypto lending industry continues to gain traction and become more popular, it is important for companies like Babel to ensure that they are taking all of the necessary steps in order to protect their creditors. While this may be a difficult process, it is essential for the safety of both lenders and borrowers alike. It will be interesting to see how Babel’s case turns out as they attempt to navigate through these increasingly complex waters.