Embattled Crypto Lender Hodlnaut Seeks Judicial Management in Order to Rehabilitate the Company
Eight days ago, the crypto lender Hodlnaut announced that the platform was suspending withdrawals after citing volatile market conditions. This week the company says it is seeking judicial management that aims to “provide the best chance of recovery.”The crypto lender Hodlnaut is looking for help from the courts so the platform can “avoid a forced liquidation” of the company’s assets.
Under Singapore law, companies under financial distress can recuperate losses with help from a judicial manager. The scheme also puts claims and legal proceedings against Hodlnaut on pause. “This pause will provide us with the breathing space to focus our efforts on the recovery plan to rehabilitate the company,” Hodlnaut explained on Tuesday. Hodlnaut hopes to appoint Mr. Tam Chee Chong of Kairos Corporate Advisory Pte Ltd as the interim judicial manager.
However, even though the company has filed to register for court-appointed management, the court has not processed the applications, and Hodlnaut says things could change. The company plans to update the public on August 19, in order to “provide more substantive updates on the judicial management process.” Hodlnaut’s withdrawal pause and financial issues follow companies like
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