Crypto trading firm Auros Global, a victim of crypto exchange FTX’s bankruptcy, has reached a resolution to restructure its distressed debt on blockchain-based lending protocol Maple Finance, its primary creditor, M11 Credit, said in a statement on Wednesday.
Auros had some $18 million in unpaid loans as of Dec. 20,
accrued from two M11 Credit-managed lending pools on Maple. The firm had missed
loan repayments since late November, citing liquidity problems due to frozen
funds on FTX. Auros entered into provisional liquidation in December, granted
by a British Virgin Islands court.
M11 said Auros has already repaid 55% of the outstanding
debt to the lending pools. Another 40% of the debt was reissued for a maximum
of nine months at 8.64% annualized interest in three cycles of 90 days. The
rest of the debt was renewed at zero interest with a 90-day maturity.
Liquidity providers of the affected lending pools should
expect full recovery of their funds, M11 Credit said.
The Auros debt restructuring comes as a relief for crypto
credit markets after a turbulent year. Distressed debt piled on lending
protocols such as Maple as the collapse of high-profile crypto firms such as
Celsius Network, Three Arrows Capital and FTX resulted in a widespread
liquidity crisis, leading to loan defaults and insolvencies.
M11 Credit is still in the process of recovering $36 million
of outstanding debt on Maple from Orthogonal Finance, a crypto trading firm
that allegedly misrepresented its financials after FTX collapsed.
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