Troubled Crypto Lender Babel Finance Looking to Hire Restructuring Specialist Houlihan Lokey: Sources
The company is reportedly in the process of signing an engagement letter with the investment banking firm.
Debt-laden cryptocurrency firm Babel Finance is hiring U.S. investment banking firm Houlihan Lokey, a specialist in restructuring and distressed mergers and acquisitions, according to two people familiar with the plans.
Hong Kong-based crypto lender Babel froze withdrawals last month amid a cascade of defaults and liquidations relating to over-leveraged firms including Three Arrows Capital and Celsius. Babel later said it had reached an agreement with counterparties on the repayment of some debts to ease short-term liquidity.
“Babel is looking at restructuring. They’ve hired Houlihan Lokey or are in the process of hiring them. They’re in the process of signing an engagement letter,” one of the people told CoinDesk.
Neither Babel Finance nor Houlihan Lokey responded to requests for comment.
Distressed crypto firms have been keeping advisory firms and lawyers busy of late, with Celsius reported to have hired Alvarez & Marsal, as well as restructuring attorneys from law firm Akin Gump Strauss Hauer & Feld, with Citigroup (C) also said to be involved in the process.
“They [Babel] are the next major one to have some kind of some kind of outcome over the next couple of weeks, whether it’s sorting out and getting buy-in from creditors or declaring insolvency or default,” the person added.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.