TrueFi served a default notice on Korea-based Blockwater Technologies for failing to on its BUSD loan.
The notice was served on oct 6th, after blockwater failed to make a scheduled payment on its amended 3,419,190 BUSD.
TrueFi’s credit group led an exhaustive out-of-court workout with Blockwater’s principals, including a loan amendment to increase the borrowing rate and extend maturity, but ultimately determined that a potential court-supervised administrative proceeding would result in a better outcome for stakeholders given the complexity of the sudden insolvency.
TrueFi continues to work with Blockwater and its advisors, the credit group will focus on maximizing recovery for lenders and stakeholders. Blockwater has made 8 loan repayment payments totaling $645,405 to date. At the time of the default, $2,967,458 is still owed.
TrueFi’s USDC, TUSD, and USDT stablecoin lending pools, as well as any of TrueFi’s capital market portfolios, are unaffected by the Blockwater default.
Further updates will be provided to the TrueFi community via twitter, and any action required by the TrueFi DAO will be subject to token-holder approval and vote.
Also Read: BlockFi had $1.8B in Outstanding Loans in Q2, 2022
