Last week, distressed crypto lending platform Hodlnaut suspended deposits and withdrawals. The Singapore-based start-up blamed “current market conditions.” In a blog post on 16 Aug 2022, Hodlnaut Pte Ltd announced that it applied with the Singapore High Court to be placed under judicial management to provide them the best chance of recovery. Hodlnaut wants to avoid a forced liquidation of their crypto assets at these current depressed asset prices.
Judicial management under Singapore law allows financially distressed companies to restructure their business under an independent court-appointed Judicial manager. Moreover, the judicial management application provides a moratorium against legal claims and proceedings. Hodlnaut will use this moratorium to focus our efforts on the recovery plan to rehabilitate the company.
Hodlnaut informed that they e applied for Tam Chee Chong of Kairos Corporate Advisory Pte Ltd to be appointed as the Interim Judicial Manager and, subsequently, the Judicial Manager. These applications, though filed, have not yet been heard in court and may be subject to change depending on the outcome of the court hearings.
