Creditors of bankrupt crypto lender Hodlnaut have rejected the firm’s restructuring plan. Instead, they seek to liquidate the firm’s assets.
The proposed restricting plan would have allowed Hodlnaut's current directors to continue overseeing its operations. Hodlnaut’s interim judicial managers claimed that liquidating the company will best serve the interests of its creditors.
Key creditors of embattled Singapore crypto lender Hodlnaut reject a proposed restructuring plan https://t.co/AEvAu4XG7a
— Bloomberg (@business) January 13, 2023
As noted by Bloomberg, Algorand Foundation (ALGO) was one of the key creditors who opposed the restructuring plan. According to Algorand Foundation, winding down Hodlnaut will “maximize the company’s remaining assets available for distribution.”
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The court hearing held on January 13 also dismissed a motion to remove Hodlnaut’s interim judicial managers.
Hodlnaut was one of the many companies impacted by the collapse of the crypto hedge fund Three Arrows Capital. In August 2022, Hodlnaut suspended withdrawals, deposits, and token swaps on its platform. The crypto lender was soon placed under interim judicial management to rehabilitate its business.
