Credit Agricole SA backed blockchain startup SETL has landed in troubled waters. The company recently appointed administrators to reorganize its business as noted in its corporate insolvency notice. Bloomberg reported that the company would be working with Quantuma LLP to reorganize its business.
A Promising Start Leads Nowhere
About two months ago, the startup appointed the former chief of France’s central bank, Christian Noyer to its board. The company was founded in 2015 to bring blockchain technology closer to the financial services industry.
Several top finance names were linked with the company- including that of David Walker, the ex-chairman of Barclays. The company was founded by Peter Randall, the former stock-exchange executive, and Chi-X founder. However, on Thursday, its insolvency notice appeared in the London Gazette.
Now, Quantuma LLP is acting as an administrator to help SETL, “move forward with the next phase of its corporate development plan,” as noted in their statement. The administrator will also “help shape the future structure, enable the company to balance its strategic infrastructure holdings and continue its software development activities on a business-as-usual basis.’’
How Will the Reorganization Take Place?
According to the Financial Times, the company will separate its investments portfolio from its software business. It has developed two business during its lifetime- one of which is the ID2S, a central securities depository.
The second business is Iznes, a platform for record-keeping of European funds. As it was a new company that didn’t hold sufficient regulatory capital, the company sold both of its units and returned to working as a software developer.
David Walker, the chairman of the company, said that the process is taking longer than expected and needs neutral, experienced and experienced management of interests for stakeholders and creditors.
The company is not filing for bankruptcy even though it suffered 5.9 million pounds in losses in 2017 and was looking for funding towards the end of 2018.