According to reports, the court-appointed judicial managers of Hodlnaut are in the midst of negotiating non-disclosure agreements with possible bidders.
According to reports, the troubled bitcoin lending company Hodlnaut is negotiating with many possible investors to sell it’s business and other assets.
Bloomberg reported on February 6 that a number of possible bidders have enquired about acquiring Hodlnaut and its claims against the defunct cryptocurrency exchange FTX.
After filing for protection from its creditors, Hodlnaut’s temporary judicial managers have received various offers to purchase its Singapore-based cryptocurrency startup. The article states, based on an affidavit, that the judicial managers are now in the process of negotiating non-disclosure agreements with possible investors.
As on December 9, 2022, according to the affidavit, Hodlnaut Group owes a total of $160,300,000, or 62% of outstanding debt, to businesses and individuals such as Algorand Foundation, Samtrade Custodian, S.A.M. Fintech, and Jean-Marc Tremeaux.
As revealed earlier, Hodlnaut’s FTX accounts had 514 Bitcoin. The corporation apparently held digital assets worth more than $18 million on controlled exchanges such as FTX, Deribit, Binance, OKX, and Tokenize.
Hodlnaut, formerly a prominent cryptocurrency lending platform, was forced to cease operations in 2022 owing to a shortage of liquidity caused by a large bear market. After suspending withdrawals in August, Hodlnaut received creditor protection from a court in Singapore, enabling the company to reorganize under judicial supervision. Angela Ee Meng Yen and Aaron Loh Cheng Lee of EY Corporate Advisors were chosen as temporary judicial managers by the court.
The announcement comes weeks after Hodlnaut’s creditors rejected the planned restructuring plan and demanded the platform’s assets be liquidated. Instead, creditors allegedly demanded fast liquidation and distribution of remaining assets to maximize the value of the remaining assets.
Hodlnaut is one of several firms specialising in crypto lending services, enabling customers to deposit crypto in exchange for interest payments. The crypto winter of 2022 has hampered the activities of crypto lenders such as Celsius Network, BlockFi, Genesis, and Vauld, among others. Several industry leaders feel that crypto financing may still survive the downturn market, however, certain criteria must be satisfied.
Also Read: The U.S. Senate Banking Committee Has Scheduled A Hearing On The “Crypto Crash” On February 14th
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