Hong Kong-based crypto lender, Babel Finance has plans to onboard Houlihan Lokey, a specialist renowned for restructuring. From reports, it is not certain if the investment firm has finally signed the engagement letter to seal the deal.
The crypto lender which was established in 2018, started experiencing the effects of the bearish market recently. To stabilize its stance in the market, it decided to halt all withdrawal and redemption transactions. The company is well bending towards liquidation following the pressure from the market.
Barely weeks after, most of its top executives resigned. Yulong Liu who leads the global partnership department is one of such executives. Liu reportedly declared his intentions to leave either by the end of June or the beginning of July. Seeing that June has ended, he is likely to quit at the beginning of this month.
Many others from the partnership team and the public relations department are also taking an exit. Browsing through their LinkedIn pages, it was observed that almost all their profiles had been deleted.
Babel Finance Keeps Fingers Crossed
Amid these woes, Babel Finance believes that Houlihan Lokey is the solution that it needs for reinvigoration. The firm on its part is an investment bank involved in restructuring markets and fixing distressed mergers and acquisitions.
According to the report, Babel reached a consensus with the affected counterparts. The financially-strained firm agreed to a repayment strategy for its debt. The motive is to alleviate the effect of the whole debt as it impacts short-term liquidation.
Presently, the fate of Babel has not been decided yet. Nevertheless, it would be either of the three reasonable outcomes suggested by an unnamed source who spoke to Coindesk. Babel would either undergo sorting out or bought in by customers or eventually declare insolvency or liquidation.
Celsius Network, a competing lender also halted withdrawal operations on its platform last month citing extreme market trends as the reason. Besides, hedge-fund manager, Three Arrow Capital (3AC) has also been ordered to be liquidated by a court in the British Virgin Islands. 3AC employed the service of Teneo Restructuring to salvage what was left of its market.
Just like Celsius, Babel has not stated any date of withdrawal resumption.