Singapore-based Hodlnaut filed a wind-up order with the courtroom on Nov. 10 because it prepares for a full liquidation of its remaining belongings, in accordance with court documents.
The winding-up course of can be carried out below the provisions of the Insolvency, Restructuring, and Dissolution Act of 2018 and is anticipated to start within the coming weeks.
The transfer comes after greater than 17,000 collectors selected to vote in opposition to a restructuring plan for the corporate in January, choosing liquidation as an alternative. Beneath the plan, the administrators who have been main the corporate when it collapsed would have been answerable for the restructuring.
Liquidation course of begins
In a round addressed to the stakeholders, the corporate’s former interim judicial managers, Aaron Lee and Angela Ee, revealed that they’d been discharged as interim judicial managers and subsequently appointed as joint and a number of other liquidators by the Excessive Courtroom of Singapore.
The liquidators emphasised the challenges posed by the substantial quantity of collectors, together with the in depth Hodlnaut consumer base. They assured collectors that efforts could be made to consolidate responses to particular person queries and supply common updates.
Nonetheless, the liquidators additionally clarified of their communication that the liquidation proceedings don’t represent an admission of any excellent sums owed by the corporate to its collectors.
Publicity to Terra, FTX
Hodlnaut, which supplied cryptocurrency lending companies, confronted monetary turmoil in August 2022 and was compelled to use for creditor safety after incurring losses of roughly $189 million, primarily as a result of its publicity to the Terra ecosystem.
TerraLUNA collapsed in Could 2022 and induced billions in losses for traders worldwide, together with firms like Hodlnaut.
The crypto lender additionally suffered a setback of $13.3 million in crypto belongings that have been frozen on FTX when withdrawals have been halted earlier than the trade filed for chapter in November 2022.
Discussion about this post