M11 reaches Auros resolution, expects 100% repayment of debt within nine months

Maple Finance delegate M11 Credit expects to see 100% of funds owed by Auros repaid within nine months, the company said.

“Liquidity Providers can, if they choose to, request their prorated withdrawal on the Maple WebApp,” said M11, adding that “capital remaining in the pool will earn interest, and new loans this year will likely be priced higher than they were in 2022.”

So far “55% of outstanding debt has been repaid to the pools” with a reissuance of 40% of the outstanding debt over a nine-month term at an 8.64% interest rate in three 90-day cycles, according to M11, which worked closely with the trading firm as Auros restructured amid uncertainty caused by the collapse of FTX.

An additional 5% of Auros’ outstanding debt was reissued at a 0% interest rate for a maximum of 90 days, “as a short term facility,” M11 said

Auros earlier filed for bankruptcy protection and received a “light touch” provisional liquidation order in Nov. after some $20 million in company assets were frozen on FTX exchange.

Liquidity providers

Amid the financial crunch, Auros defaulted on a $7.5 million payment on a Maple Finance loan.

Following this, “in order to protect the interest of all liquidity providers in the affected M11 Credit Pools, we took the step of impairing all Auros loans … to ensure all liquidity providers were treated equally with respect to any withdrawals from the Maple platform,” M11 said.

Although M11 expressed gratitude for “the professionalism and hard work” of the Auros team, it cast a dimmer light on the actions of Orthogonal Trading, with which the company cut ties after a $26 million default, similarly related to the fall of FTX.

Given the efforts of Auros to settle its debt, “it is even more unfortunate and unforgiving that Orthogonal Trading did not take similar action and engage in active dialogue when facing their own liquidity issues in the wake of FTX,” said M11.