Business Maverick: Distressed Crypto Lender Babel Wins Reprieve on Debt Repayments

Hong Kong-based Babel has “reached preliminary agreements on the repayment period of some debts, which has eased the company’s short-term liquidity pressure,” itsent to Bloomberg on Monday and later posted to its website. Co-founder Flex Yang told Bloomberg the company “will disclose to the public” once they’ve made progress.

Babel is in talks with large institutions about potential solutions that include setting up a new entity to take over some of the debt, a person with knowledge of the matter said, asking not to be identified discussing private information.has frozen withdrawals and a prominent hedge fund is trying to stave off collapse. Babel cited “unusual liquidity pressures” for its decision to halt withdrawals.

“Given the current context of severe market volatility, Babel Finance’s management will continue to communicate closely with customers, counterparties, and other partners, and provide updates in a timely and transparent manner,” the company said in the statement. The halt on withdrawals marked a sudden reversal of fortunes for Sequoia Capital China-backed Babel, which less than a month ago announced an $80 million funding round that put its valuation at $2 billion. The company had an outstanding loan balance of more than $3 billion at the end of last year.With more than $2 billion wiped off the value of cryptocurrencies since they peaked last year, a wave of liquidations now represents an existential threat to many industry participants.

Australia Australia Latest News, Australia Australia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Crypto industry gripped by anxietyThe crypto industry was on edge on Monday morning on fears contagion from problems at major crypto players could unleash a major shakeout if not contained.
Source: TechCentral - 🏆 8. / 71 Read more »

Business Maverick: UK pushed 100,000 people into poverty by lifting pension ageBritain raised its state pension age to 66 from 65 between late 2018 and the end of 2020. That meant about 700,000 people on the brink of receiving benefits missed out on income of about £142 ($174) a week.
Source: dailymaverick - 🏆 3. / 84 Read more »

Business Maverick: Fed’s big rate hike unearths bounty in pockets of emerging worldPockets of outperformance are starting to pop up in emerging markets even as the Federal Reserve’s most aggressive rate hike in two decades roils assets around the world.
Source: dailymaverick - 🏆 3. / 84 Read more »

Business Maverick: British manufacturers decry government ‘gimmicks’, want tax cutsThe Paris-based OECD forecast this month that Britain will see the weakest growth next year of any major economy other than Russia, as well as persistent inflation. your sanctions 🤕 your recession 🤕
Source: dailymaverick - 🏆 3. / 84 Read more »

Business Maverick: Macron’s historic ballot setback risks undermining reform agendaThe French president failed to get an outright majority in parliament over the weekend after the leftist coalition Nupes gained 131 seats and the right-wing National Rally gained 89 seats. This shift in power will force Macron to negotiate.
Source: dailymaverick - 🏆 3. / 84 Read more »

Business Maverick: Italy Sees No Need to Trigger Emergency Gas Alert Amid Higher Africa FlowsItaly’s government does not see an immediate need to trigger an emergency gas alert and could put on hold a plan to take that decision as soon as this week following an increase in flows from other countries, according to a person familiar with the matter.
Source: dailymaverick - 🏆 3. / 84 Read more »