Sunday, June 16, 2024

Hodlnaut seeks judicial management for ongoing liquidity crisis.

Hodlnaut, a crypto lending platform, has sought judicial management to look into its ongoing liquidity crisis. The Singapore-based company wants to avoid the forced liquidation of assets in the current bear market. It informed users in an official announcement that Hodlnaut has applied to the Singapore High Court to be placed under judicial management.

The crypto platform wants to avoid liquidation of its assets as it is a suboptimal solution that will require it to sell the users’ cryptocurrencies such as Bitcoin, Ethereum and Wrapped Bitcoin at the current depressed asset prices. Hodlnaut believes that judicial management would provide the best chance of recovery.

In Singapore, judicial management allows financially troubled firms to rehabilitate themselves. The court, under this law, assigns an officer – judicial manager – for the aggrieved firm that takes over the charge from the company’s director for the time being. The designation can take up to a few months. As such, the troubled company can appoint an interim judicial manager to act on a temporary basis in the same capacity. For this, Hodlnaut has nominated Tam Chee Chong, the director of Kairos Corporate Advisory, as the interim and subsequent judicial manager. Chong has about four decades of experience in corporate finance advisory. He has taken the role of a judicial manager in various companies.

Hodlnaut believes that with Chong’s experience and track record, he will be able to execute the company’s recovery plan and restructure the business effectively. However, the application is yet to be heard by the court. If given the go-ahead, Hodlnaut would be temporarily protected from legal claims and proceedings. The company wants the much-needed breathing space to focus its efforts on the recovery plan to rehabilitate Hodlnaut.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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