AVAX One's Lender Cracks Down on Liquidity Threshold

AVAX One's lender has imposed drastic new conditions on the company in exchange for waiving a breach. This includes increasing AVAX One's minimum liquidity requirement by 3,400%, to $3.5 million from $100,000, and only counting bank cash and Bitcoin toward this threshold.

This effectively excludes the company's nearly 14 million AVAX tokens, worth around $88 million, from meeting the new liquidity test.

The lender also accelerated capital recovery by increasing monthly redemptions to one-tenth of the original principal from one-twenty-fifth and reduced the conversion price for debt holders to 82.5% from 85% of a benchmark tied to the three lowest trading prices over the previous 10 trading days.

AVAX One has been restructuring its debt since July, when CEO Jolie Kahn departed, triggering a default on a key-person covenant and forcing the company to renegotiate with its lender.