Babel's Transformative Debt Restructuring Garners CBLJ Award
Deal News | Apr 03, 2025 | Carey Olsen
Babel Group and its subsidiaries have undergone a significant debt restructuring, amounting to over US$1.5 billion, following market instability in June 2022, which had caused a liquidity crunch. This restructuring involved innovative financial structures such as debt-token swaps and substantive consolidation, setting a precedent in the cryptocurrency industry for resolving complex financial issues. Carey Olsen provided critical legal guidance on this process, addressing regulatory compliance in the Cayman Islands and the British Virgin Islands. Their efforts in navigating Babel's intricate restructuring challenges have earned them the 'Deal of the Year' award from the China Business Law Journal. The Carey Olsen team, with key contributions from their Singapore office's partners and associates, played a pivotal role in managing the restructuring successfully.
Sectors
- Cryptocurrency
- Legal Services
- Debt Restructuring
Geography
- Cayman Islands – Carey Olsen provided legal advice specifically concerning regulations in the Cayman Islands, highlighting the geographical relevance.
- British Virgin Islands – The involvement of British Virgin Islands legal regulations in Babel's restructuring showcases this location's importance in the transaction.
- Singapore – The Carey Olsen Singapore team played a leading role, indicating Singapore's involvement in the legal advisory process.
Industry
- Cryptocurrency – The restructuring of Babel Group, a cryptocurrency-related business, highlights significant financial developments and impacts within the cryptocurrency industry.
- Legal Services – Carey Olsen's role in providing legal advice for Babel's restructuring situates this within the legal services industry, especially in offshore legal advisory.
- Debt Restructuring – The debt restructuring process described in the article is emblematic of the debt restructuring industry and its innovative practices.
Financials
- US$1.5 billion – The total amount involved in Babel's debt restructuring.
- US$2 billion – Babel's valuation prior to its liquidity crunch in June 2022.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Babel Group | Target Company | Company | Engages in crypto-lending and crypto asset management, the focus of a significant debt restructuring case. |
| Carey Olsen | Legal Advisor | Company | Provided crucial legal support and guidance for Babel's debt restructuring process, ensuring regulatory compliance. |
| China Business Law Journal | Awarding Institution | Company | Recognized Carey Olsen's work with the 'Deal of the Year' award for their innovative and strategic legal counsel in the Babel restructuring. |
| James Noble | Partner | Person | Led the Carey Olsen team advising Babel, contributing to the strategic legal framework. |
| Anthony McKenzie | Partner | Person | Part of Carey Olsen's leadership team for the Babel restructuring process. |
| Susan McKinstray | Counsel | Person | Counsel in the Carey Olsen team advising Babel. |
| Amelia Tan | Counsel | Person | Counsel in the Carey Olsen team advising Babel. |
| Wei Xun Toh | Senior Associate | Person | Senior Associate supporting the Carey Olsen team's efforts in Babel's restructuring. |
| Chris Duncan | Partner | Person | Cayman Islands partner contributing to Carey Olsen's advisory role. |
| Peter Sherwood | Partner | Person | Cayman Islands partner contributing to Carey Olsen's advisory role. |