1 year ago
Singapore-based Hodlnaut filed a wind-up bid with the tribunal connected Nov. 10 arsenic it prepares for a afloat liquidation of its remaining assets, according to court documents.
The winding-up process volition beryllium carried retired nether the provisions of the Insolvency, Restructuring, and Dissolution Act of 2018 and is expected to statesman successful the coming weeks.
The determination comes aft much than 17,000 creditors chose to ballot against a restructuring program for the institution successful January, opting for liquidation instead. Under the plan, the directors who were starring the institution erstwhile it collapsed would person been successful complaint of the restructuring.
Liquidation process begins
In a circular addressed to the stakeholders, the company’s erstwhile interim judicial managers, Aaron Lee and Angela Ee, revealed that they had been discharged arsenic interim judicial managers and subsequently appointed arsenic associated and respective liquidators by the High Court of Singapore.
The liquidators emphasized the challenges posed by the important measurement of creditors, including the extended Hodlnaut idiosyncratic base. They assured creditors that efforts would beryllium made to consolidate responses to idiosyncratic queries and supply regular updates.
However, the liquidators besides clarified successful their connection that the liquidation proceedings bash not represent an admittance of immoderate outstanding sums owed by the institution to its creditors.
Exposure to Terra, FTX
Hodlnaut, which provided cryptocurrency lending services, faced fiscal turmoil successful August 2022 and was forced to use for creditor extortion aft incurring losses of astir $189 million, chiefly owed to its vulnerability to the Terra ecosystem.
TerraLUNA collapsed successful May 2022 and caused billions successful losses for investors worldwide, including companies similar Hodlnaut.
The crypto lender besides suffered a setback of $13.3 cardinal successful crypto assets that were frozen connected FTX erstwhile withdrawals were halted earlier the speech filed for bankruptcy successful November 2022.
The station Hodlnaut files upwind up bid successful mentation for liquidation appeared archetypal connected CryptoSlate.
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