a month ago 1 min read

$18M Maple Finance Debt Settlement Agreed by M11 Credit and Auros

maple-auros global-ftx-m11 credit

The company has resolved to modify its financing deal with Maple Finance, the principal creditor of Auros Global, a cryptocurrency trading firm impacted by FTX's bankruptcy.

Auros has paid back 55% of its remaining obligation to the loan pool. A further 40% of the debt is reissued over three 90-day cycles at an annualized rate of 8.64%, with maturities as long as nine months. The remaining debt was carried over for a 90-day period at no interest. Liquidity providers in the impacted loan pools should anticipate receiving their entire investment back.

As of December 20 of the previous year, Auros had almost $18 million in unpaid debts from two loan pools administered by M11 Credit on Maple. Since late November, the company has been unable to pay back the loan due to liquidity problems brought on by the suspension of FTX funds.

A British Virgin Islands court gave its authority for Auros to enter provisional liquidation in December. Not just Auros, but the cryptocurrency credit market as a whole, had several difficulties in 2018.

M11 Credit is owed $36 million on Maple by Orthogonal Finance, a cryptocurrency trading company that also admitted to fabricating its financial statements following the FTX disaster. In the British Virgin Islands High Court, M11 Credit and Maple had requested a "urgent ex parte application" to appoint a provisional liquidator for Orthogonal Trade.

Due to the bankruptcy of well-known cryptocurrency businesses like Celsius Network, Three Arrows Capital, and FTX, bad debts piled on lending platforms like Maple, causing a global liquidity crisis that ultimately led to insolvency and insolvency.

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