Asian crypto lender, Hodlnaut has updated its users on the state of its affairs on a recovery plan presently.
According to its website post, Hodlnaut announced that there has been an 80% retrenchment exercise of its employees. Therefore, it has taken out about 40 members of staff. Also, it was mentioned that the crypto lender has a pending case with the Singapore Police.
Hodlnaut is a crypto firm that had to suspend withdrawal and trading on its platform due to the bearish market. Specifically, the Singapore lender pointed to the TerraUSD crash which its Hong Kong subsidiary was exposed.
Customers started requesting huge withdrawals from its platform at a high volume. Then, the decline in the price of crypto happened which was a huge fall from their prices the previous year.
All these components suggested forced liquidation of the firm’s assets. Instead, Hodlnaut went ahead to apply for judiciary management from Singapore High Court. A forced liquidation will only turn out to give up their crypto assets at a depressed price. Hodlnaut settled for the judiciary management which will permit it to go through with a recovery plan.
As part of the process, an officer from the court is appointed as a Judiciary Manager. The Judiciary Manager will take over the affairs of the company, and manage it until the judiciary management elapses.
Interim Judicial Manager to Supervise Hodlnaut Recovery Plan
The court is yet to appoint an independent officer for the beleaguered Singapore crypto lender.
Given that, Hodlnaut is considering the Director of Kairos Corporate Advisory Pte Ltd, Mr. Tam Chee Chong to be its Judiciary Manager. In addition to the filed judiciary management application, a moratorium providing a temporal pause will be issued to Hodlnaut. This will protect it against impending lawsuits from creditors.
Providing an update on its application for judiciary management, Hodlnaut is awaiting the appointment of an interim judicial manager. Once he is onboarded, the crypto lender plans to reduce its burn rates, therefore there will be a change in its open-term interest rate. Effective from August 22nd when the next court hearing will hold, a 0% APR will be applicable.
For now, the firm is left with only key employees necessary for its restructuring and recovery plan. While Hodlnaut awaits the hearing for its interim judicial manager, the case conference for the full-time judiciary management will be held on August 30th.