Hodlonaut’s request to be put to be placed under judicial management with the Singapore High Court was agreed upon, but the judicial managers – Samtrade Custodian Limited and S.A.M Fintech Pte Ltd – disagreed with the lender’s proposed candidate.
By avoiding the forced liquidation of assets, the company had earlier said that undergoing judicial management would provide it with the best chance of recovery instead of filing for suspension.
According to the latest announcement, the Samtrade JMs proposed the appointment of three judicial managers from Grant Thornton – Rajagopalan Seshadri, Paresh Jotangia, and Ho May Kee to be Hodlnaut’s interim judicial managers / judicial managers.
In an earlier application, Hodlonaut sought to appoint a judicial manager to avoid liquidating customer assets at a loss. As such, the company applied for one Tam Chee Chong of Kairos Corporate Advisory Pte Ltd to be appointed as the Interim Judicial Manager as it looked to rehabilitate its business.
The financially distressed crypto lender has $281 million in unpaid debt against $88 million in assets, meaning an asset-to-debt ratio of 0.31.
In a more recent update, Hodlnaut had to decrease interest rates and lay off nearly 80% of the workforce, or approximately 40 employees, since freezing platform activity in earlier this month.
The cost-cutting measures were taken in order to remain operational until the request for judicial management is approved.
With a significant decline in the price of the crypto-assets, Hodlnaut said that the liquidation at current rates would not allow users to withdraw even their initial deposit.
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