in crisis cryptocurrency credit company Hodlnaut has been placed under interim judicial management (IJM), a form of creditor protection, according to an announcement.
The company stopped withdrawals about three weeks ago due to “difficult market conditions”.
Forensic management is a form of debt restructuring that allows another entity to manage the business, property and assets of a distressed company. In this case, Hodlnaut will also be protected from legal action by third parties.
Cryptocurrency Company Hodlnaut Temporarily Appointed Judiciary
On 29 August, Hodlnaut’s legal representatives attended a court hearing with two creditors, both of whom had filed as trustees. The judge appointed Ee Meng Yen Angela and Aaron Loh Cheng Lee of EY Corporate Advisors Pte Ltd as interim judicial directors of Hodlnaut.
Hodlnaut filed for judicial review on August 13, five days after freezing withdrawals.
The Singaporean cryptocurrency lender was one of the few crypto companies to succumb to the pressures of the downturn in the crypto market.
While rival lender Celsius Finance filed for bankruptcy earlier this year, hedge fund Three Arrows Capital collapsed after exposure to the crashed Terra (LUNA) ecosystem in May, losing $83 billion in market value. At that time this development bitcoin negatively affected its price.
The Terra ecosystem, together with its stablecoin, made up approximately $80 billion.
No comment has been made yet from the company Hodlnaut on the subject.
*Not investment advice.
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