AVAX One Struggles Under Tightened Lender Conditions
AVAX One is facing strict debt conditions imposed by an institutional investor after CEO Jolie Kahn's departure in July. The company's minimum liquidity requirement has been increased by a staggering 3,400%, from $100,000 to $3.5 million.
The new agreement specifically excludes the company's core Avalanche treasury from satisfying the test, regardless of its market value. AVAX One holds nearly 14 million AVAX tokens worth approximately $88 million, but only bank cash and Bitcoin are recognized as valid means of meeting the liquidity requirement.
As part of the restructuring, the lender waived a breach after AVAX One paid $1.3 million and accepted the tougher financial conditions. The company also faces a 180-day deadline to appoint a permanent CEO deemed acceptable by the lender, with Peter Wylie Jr. currently serving as interim chief executive.