According to research, Bittrex has received approval from a U.S. bankruptcy judge for a $7 million loan from its parent company on May 10th.
Bittrex to gain $7M loan, possibly more
During a court hearing, Judge Brendan Shannon granted Bittrex approval for a $7 million loan from its parent company, Aquila Holdings. The loan, consisting of 250 BTC, was granted in part due to the specific features of cryptocurrency, such as its low-interest rate and volatility protections. Additionally, Bittrex plans to request another loan of 450 BTC during a June hearing. If Bitcoin's value remains stable until next month, the second loan would be worth $12.4 million, bringing the total of the two loans up to $19 million. Bittrex claims that it can afford to pay back all customers in cryptocurrency, but the loan will help facilitate the bankruptcy process.
Under the terms of the loan agreement, Bittrex will not need to pay back more than 110% of Bitcoin's current value when repaying the loan. The loan will come from Aquila Holdings, and Judge Shannon's approval of the loan was seen as a positive move for the bankruptcy proceedings.
Bittrex filed for bankruptcy this week
Bittrex first hinted at suspending its U.S. operations in late March, citing regulatory hurdles. On April 17, the U.S. Securities and Exchange Commission charged the company with operating an unregistered securities exchange.
Despite this, Bittrex announced on May 8 that it would file for bankruptcy in the U.S. but would continue to operate globally. The company stated that its assets and liabilities were each worth between $500 million and $1 billion, with over 100,000 creditors.
In the last 24 hours, Bittrex has recorded a relatively modest trading volume of $7.2 million.
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