Babel Finance Files Moratorium Application in Singapore High Court

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Mar 06, 2023, 10:39 ET

SINGAPORE, March 6, 2023 /PRNewswire/ -- For the purpose of this announcement, "Babel Finance" refers to Babel Holding Limited and certain of its subsidiaries and related parties.

Background

Following the cryptocurrency market volatility in June 2022, Babel Finance experienced a liquidity crunch and on 17 June 2022 announced the suspension of redemptions and withdrawals to stabilize its financial position and protect the interests of the creditors and relevant stakeholders.

Since then, Babel Finance has engaged financial and legal advisers (the "Advisers"), including Houlihan Lokey, Kirkland & Ellis, Allen & Gledhill, and Carey Olsen, to advise on its restructuring and has been engaging with its creditors on a proposed restructuring plan (the "Restructuring Plan"). The Restructuring Plan was initially circulated to creditors in August 2022 and it has been revised in response to the feedback from creditors and relevant stakeholders.

Restructuring Progress

Babel Finance has received indications of interest for a new money investment to recapitalize its balance sheet and relaunch its business. Discussions with the prospective new money investors are ongoing, and Babel Finance is targeting binding commitments by May 2023.

Babel Finance will continue to work with its creditors, stakeholders and prospective investors in the coming months to finalise the definitive documentation for the Restructuring Plan. The Restructuring Plan will be implemented via one or more schemes of arrangement (the "Scheme") in relevant jurisdictions, including Singapore. Babel Finance currently targets to file the Scheme by June 2023.

Flex Yang, a founder of Babel Finance, is amongst the investors providing capital for the recapitalization and is expected to take on a leadership position in the relaunched business.

Moratorium Application

In light of the foregoing developments, Babel Finance has filed applications in the General Division of the High Court of the Republic of Singapore for moratorium protection under section 64 of the Insolvency, Restructuring and Dissolution Act (Act No 40 of 2018, Singapore) on 6 March 2023 (the "Singapore Moratorium Applications").

The Singapore Moratorium Applications are intended to allow the restructuring efforts made by Babel Finance in the past few months to come to fruition .

Babel Finance has uploaded the relevant Singapore Moratorium Applications materials to an iDeals virtual data room available for creditors' inspection. Creditors wishing to access the materials can contact Houlihan Lokey representatives at [email protected].

Engagement of Independent Adviser and Scheme Manager

In anticipation of the proposed Scheme, Babel Finance has engaged FTI Consulting to carry out an independent evaluation of aspects of the Restructuring Plan. Babel Finance also intends to nominate partners from an international accounting firm to act as the proposed scheme administrator or manager for the proposed Scheme.

Contact Details

Babel Finance remains committed to work closely with its creditors, relevant stakeholders and prospective investors with a view to completing the restructuring successfully.

For any queries, please contact the Advisers at the addresses below:

Houlihan Lokey (financial adviser)

Email: [email protected]

Kirkland & Ellis (legal adviser as to Hong Kong law)

Email: [email protected]

Allen & Gledhill (legal adviser as to Singapore law)

Email: [email protected]

Carey Olsen (legal adviser as to British Virgin Islands and Cayman Islands law)

Email: [email protected]

Eleven International (public relations agency of record, and media contact)

Email: [email protected]

SOURCE Babel Finance