Media reports Babel Finance in talks with restructuring specialists

One of Asia’s largest crypto lenders, Babel Finance, is discussing a potential collaboration with the American firm Houlihan Lokey. The latter specializes in financial restructurings, CoinDesk reports citing sources.

“They [Babel] are the next major company for which, in the coming weeks, there will be some outcome: either a settlement and creditor support, or an insolvency or default announcement,” the source said.

Another source said Babel Finance is weighing a restructuring. According to him, an engagement letter with Houlihan Lokey is in the process of being signed.

Representatives for both sides have not yet commented on the information.

Earlier Babel Finance closed a Series B funding round of $80 million at a $2 billion valuation.

In June, the company announced the suspension of payments and withdrawals from its own products due to liquidity shortages.

Subsequently, Babel Finance representatives denied reports of insolvency and said that preliminary agreements had been reached to repay part of the debts.

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