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.

AccessTimeIconJul 1, 2022 at 3:36 p.m. UTC
Updated May 11, 2023 at 5:34 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now

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.

  • Key Events You Shouldn't Miss at Consensus 2024
    02:13
    Key Events You Shouldn't Miss at Consensus 2024
  • What to Expect From Consensus 2024
    11:19
    What to Expect From Consensus 2024
  • Will Solana and Altcoins Dominate the Market Next?
    13:29
    Will Solana and Altcoins Dominate the Market Next?
  • What's Next for FIT21?
    07:15
    What's Next for FIT21?
  • “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.

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Ian Allison

    Ian Allison is an award-winning senior reporter at CoinDesk. He holds ETH.


    Learn more about Consensus 2024, 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.