Babel Finance Proposes a Creative Solution in Repaying Its Debts

03/06/2023 01:01 • AI & Tech Insights • 73 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

Interpretation of the news:

Babel Finance, a crypto financial service provider, has proposed a unique solution in repaying the debt of its creditors through the casting of “Babel Recovery Coins”. The company seeks to repay $766 million of debt through the revenue generated from these coins. While the proposal seems promising, Yang Zhou, the sole director of the company, plans to file a suspension of protection order with the High Court of Singapore. This order would prevent creditors from taking further action against the company for up to six months while seeking reorganization approval.

The concept of Babel Recovery Coins is intriguing. The coins are designed to be pegged to Babel Finance’s future revenue, which they aim to generate from their borrowing business. The company hopes to sell these tokens to raise the $766 million necessary for debt repayment. It is an innovative concept that could potentially revolutionize the way businesses approach debt and financing. The coins already exist on the blockchain, but the company has yet to release them to the public. However, if successful, it could open up a new avenue for companies to pay off debts creatively.

However, the decision to file for a suspension of protection order raises some concerns. The order could lead to a delay in the repayment of the debt and cause more problems for creditors. Additionally, it is uncertain how long the reorganization process will take, and creditors may not be willing to wait indefinitely. It is understandable for Babel Finance to seek protection and time to reorganize itself. Still, they must work towards repaying their creditors as soon as possible to avoid damaging their reputation and credibility.

In conclusion, Babel Finance’s proposal to use Babel Recovery Coins to repay creditors’ debts is a smart and creative solution. If successful, it could be a game-changer for the crypto and finance industries. However, their decision to file for a suspension of protection order needs to be managed carefully. Creditors may not be willing to wait indefinitely for debt repayment, and delays could cause further problems for Babel Finance. The company must work diligently towards repaying their debt to restore their reputation and credibility in the market.

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Babel Finance Proposes a Creative Solution in Repaying Its Debts

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

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