Creditors of Collapsed South African Crypto Firm Vote to Accept Offer to Resuscitate the Company – News Bitcoin News

Africrypt South Africa’s crypto trading business has reached an agreement with its creditors to accept a recent proposal from an investor seeking to save the company.

Africrypt’s Intellectual Property

In addition to paying $4 million — which will be used to pay off some of the crypto firm’s debts — the investor is also willing to part with $1 million which will go towards the acquisition of 51% of Africrypt’s shares and the company’s intellectual property rights. News previously reported that an unknown investor suggested injecting $5 million into the now defunct crypto company. While a few of the creditors had voiced their disapproval of the investor’s proposal to have criminal charges against Africrypt’s two young directors dropped, there was an expectation that creditors would still accept the proposition.

‘Not the Worst Deal’

As Moneyweb reported, most creditors voted for the offer, which is a better outcome for them. This sentiment is aptly summed up by Ruann Kruger who is the legal representative of Africrypt’s liquidators. Kruger said:

It seems that some believe that the company has some intellectual property that is useful, so the plan is for the company to acquire it as part of the settlement.

One Africrypt investor said that the proposed bailout is not necessarily bad.

“It’s not the worst deal one could hope for. We get maybe 40c or 50c back in the rand, and the company may be revived in such a way that the other funds are recouped over time,” the investor argued.

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