Hodlnaut creditors rejected restructuring plan

The crypto-lending platform Hodlnaut is considering liquidation after creditors rejected the proposed restructuring plan. Bloomberg reports.

The proposal envisaged allowing the firm’s current top management to oversee activities during the restructuring. Creditors rejected the petition to remove the interim managers.

The committee deemed it prudent to wind down and immediately liquidate the remaining Hodlnaut assets to maximise their value.

On August 8, the Singapore-based crypto company paused withdrawals, swaps and token deposits. Hodlnaut immediately sought court protection from creditors.

The platform also laid off 80% of staff to cut costs.

The company acknowledged a capital shortfall of $193 million. Of this amount nearly $190 million is linked to losses suffered by the platform as a result of the Terra ecosystem collapse.

In September it emerged that Hodlnaut owed $35 million to the Algorand Foundation, a non-profit organization.

In November, Singapore police opened an investigation into the company and its leadership over allegations of deceit and fraud.

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