Hodlnaut Put Under Judicial Management by Singapore Court
According to a statement released on August 29, the troubled cryptocurrency lender Hodlnaut has been placed under the supervision of interim judicial management (IJM).
The notification states that the court has designated Ee Meng Yen Angela and Aaron Loh Cheng Lee, care of EY Corporate Advisors Pte. Ltd., as temporary managers for the firm based in Singapore.
Between the two of them, Aaron and Angela have more than fifty years of experience working on company recovery and restructuring assignments.
Judicial management is a method of debt restructuring that, in accordance with the recommendations of legal counsel in Singapore, transfers the control of a financially troubled company’s business activities into the hands of an individual or an entity.
The procedure also provides the troubled company with temporary protection from legal action brought on by third parties.
Following the suspension of withdrawals on August 8th, Hodlnaut submitted its application to be placed under judicial control on August 13th.
The request for comment that CryptoAnnals made to Hodlnaut was not met with a response.
The official Hodlnaut Telegram channel stated that additional information would be provided if the Independent Judicial Monitor (IJM) deemed it appropriate.
Creditors are concerned about the expense of hiring judicial managers.
Several of the creditors have voiced concerns regarding the fees charged by the judicial managers.
One of the creditors believes that Hodlnaut ought to make this information public because the creditors are the ones who are currently footing the bill for the wages of the court managers.
According to the viewpoint of a different creditor, “nothing comes cheap in any restructuring advisory company.”
Hodlnaut did not make any of the information it has concerning the fees associated with its new judicial managers public.
During the recent collapse of the cryptocurrency market, Hodlnaut was one of the many crypto firms that went bankrupt. Other lenders, like Celsius Network and Voyager Digital, have declared bankruptcy as a result of the depressed state of the market.