As previously reported, enterprise blockchain startup Symbiont filed for Chapter 11 bankruptcy protection on December 1. Recent legal filings indicate there are two potential investors. The legal papers also reveal the massive legal costs incurred in fighting a lawsuit that resulted in Symbiont receiving a $53 million payout from IHS Markit-owned IPREO.
Symbiont is backed by Citi, Nasdaq Ventures and Broadridge, amongst others, and has several big name clients, including Vanguard. It is progressing several capital markets projects, including a solution for margins of FX forward contracts and a mortgage servicing platform.
On the day of the bankruptcy filing, a secured loan of $2.3 million was due to be repaid to LM Funding. Symbiont took out the loan in December 2021 after Symbiont won a lawsuit against IPREO, but had not received the payout because of an appeal. At the end of December 2021, a settlement of $53 million in Symbiont’s favor was agreed and paid. However, LM Funding was not repaid, and no cash was left by the time the loan became due this month.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
