Hodlnaut get creditor protection, interim judicial management
Quick Take
- After filing for judicial management on Aug. 13, a court granted it to the struggling crypto lender Hodlnaut on Tuesday.
- Ee Meng Yen Angela and Aaron Loh Cheng Lee from EY Corporate Advisors are Hodlnaut’s interim judicial managers.
Hodlnaut was granted interim judicial management and creditor protection via court order on Tuesday.
The judge appointed Ee Meng Yen Angela and Aaron Loh Cheng Lee from EY Corporate Advisors as the crypto lender's interim judicial managers, Hodlnaut said.
Interim judicial management is when a third-party attempts to rehabilitate a distressed company through debt and property reorganization, according to Singapore Legal Advice. The company is shielded from legal proceedings by creditors at this time as well.
Hodlnaut filed for judicial management on Aug. 13 after halting withdrawals, token swaps and deposits amid a liquidity crisis stemming from the Terra collapse. Nearly a week later, the firm said there were “pending proceedings” between itself and the Singapore Attorney-General and Singapore Police Force in, and laid off 40 employees, or 80% of its staff.
Hodlnaut has a financial shortfall of $193 million; it has an outstanding liability of $281 million while only managing assets worth $88 million, The Block previously reported.
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