Almost a month after Hodlnaut froze withdrawals, the crypto lender has been placed under Interim Judicial Management.
For the uninitiated, Judicial management is essentially a debt restructuring method where an independent judicial manager is appointed to oversee the affairs, business, and property of a financially distressed company.
With the latest judgment delivered on August 29 by the Singapore Court, Hodlnaut will be temporarily shielded from legal proceedings by third parties, allowing it to rehabilitate.
The lender had earlier said that undergoing judicial management would provide it with the best chance of recovery instead of filing for suspension, which could trigger forced liquidation of assets.
As per the latest update, the Singapore-based company’s legal representatives attended a court hearing wherein the Judge appointed Ee Meng Yen Angela and Aaron Loh Cheng Lee, care of EY Corporate Advisors Pte. Ltd., as the Interim Judicial Managers.
“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 is one of the several firms in the industry, including hedge fund Three Arrows Capital and lenders Voyager Digital and Celsius Network, to stumble under the cratering market conditions following exposure to the Terra ecosystem that imploded in May.
Since freezing platform activity, Hodlnaut laid off around 80% of the workforce or approximately 40 people. In a bid to stabilize its liquidity and cut costs, the company even slashed interest rates to a 0% annual percentage rate.
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