Hodlnaut finally achieves Interim Judicial Management by the Singapore court

August 31, 2022

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The troubled crypto lending platform Hodlnaut has been placed under Interim Judicial Management over a month after it froze withdrawals.

The company will be temporarily protected from legal actions by third parties as a result of the most recent judgment rendered on August 29 by the Singapore Court, allowing it to recover.

Notably, as TheCoinRise reported, Hodlnaut applied for judicial management a few days back, naming Kairos Corporate Advisory Pte Ltd’s restructuring veteran Mr. Tam Chee Chong as its interim Judicial Manager.

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Judicial management generally involves the appointment of an impartial judicial manager to supervise the affairs, operations, and assets of a financially troubled company.

Hodlnaut had previously stated that, as opposed to filing for suspension, which would result in forced asset liquidation, judicial management would provide it the best chance of recovery.

According to the most recent information, the legal counsel for the Singapore-based company appeared in court where the judge named Ee Meng Yen Angela and Aaron Loh Cheng Lee, through EY Corporate Advisors Pte. Ltd., as the Interim Judicial Managers. It stated:

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“We will not be able to provide further information at this juncture, but hope to provide further updates once our IJMs determine it necessary to do so.”

Hodlnaut’s story

Hodlnaut is one of the many companies in the sector, such as hedge fund Three Arrows Capital and lenders Voyager Digital and Celsius Network, that have experienced difficulties as a result of the deteriorating market conditions brought on by their exposure to the Terra ecosystem in May, when it collapsed.

Following the suspension of user withdrawal and other activities on platform, Hodlnaut dismissed nearly 80% of its workforce, which totaled to 40 individuals. The company went so far as to reduce interest rates to 0% on an annualised basis in an effort to improve its liquidity and reduce its operating expenses.