An array of crypto projects failed to stay afloat amidst the bear market. The regular bankruptcy filings by several crypto lending platforms sent shockwaves across the globe. Singapore, however, seemed to be facing much more trouble as numerous platforms from the region were insolvent.
Hodlnaut recently joined its counterparts Celsius, Vauld, Three Arrows Capital, and others. Earlier this month, the platform with $500 million AUM abruptly halted withdrawals citing turbulent market conditions. Soon after this, the firm applied to be put under judicial management. Now, the court has reportedly given the platform a green signal for the same.
In a recent update, Hodlnaut revealed that it had been placed under interim judicial management [IJM]. It should be noted that this is a form of creditor protection. Just yesterday, the law firm representing Hodlnaut went to a court hearing. Along with the lawyers, two creditors had also submitted nominations for IJM candidates.
Furthermore, in the hearing the Judge, went on to appoint Ee Meng Yen Angela and Aaron Loh Cheng Lee, care of EY Corporate Advisors Pte. Ltd., as Hodlnaut’s interim judicial managers.
Additionally, the firm has been keeping the community updated about its latest set of moves. However now, it is obligated to seek the guidance of its IJM. Hodlnaut further wrote,
“We will not be able to provide further information at this juncture, but hope to provide further updates once our IJMs determine it necessary to do so.”
Will these IJM pull out Hodlnaut from its woes?
Hodlnaut rose to immense popularity following its decision to stop withdrawals. Just last week, it was brought to light that the firm entailed an outstanding liability of about $281 million [SGD 391 million]. In addition to this, the Singapore-based lender incurred a shortfall of about $193 million.
With its interim judicial management, the platform hopes to garner guidance with regard to debt restructuring. With this, the firm would also be shielded from any form of legal proceedings.