Hodlonaut’s request to be placed under judicial management in the Singapore High Court was agreed, but the judicial managers – Samtrade Custodian Limited and SAM Fintech Pte Ltd – disagreed with the lender’s proposed candidate.
Avoiding the forced liquidation of assets, the company had previously stated that undergoing judicial management would provide it with the best chance of recovery instead of asking for suspension.
- According to the latest announcement, the Samtrade JMs have proposed appointing three of Grant Thornton’s judicial officers – Rajagopalan Seshadri, Paresh Jotangia and Ho May Kee as Hodlnaut’s interim judicial officers / directors.
- In a previous question, Hodlonaut tried to appoint a judicial director to avoid liquidating clients’ assets at a loss. As such, the company asked a Tam Chee Chong of Kairos Corporate Advisory Pte Ltd to be appointed interim Judicial Director as he sought to rehabilitate his business.
- The financially distressed cryptocurrency lender has $ 281 million in unpaid debt versus $ 88 million in assets, which means an asset-to-debt ratio of 0.31.
- In a more recent update, Hodlnaut had to cut interest rates and lay off nearly 80% of the workforce, or around 40 employees, since he froze the platform’s operations earlier this month.
- The cost containment measures were adopted to remain operational until the approval of the request for judicial management.
- With a significant drop in the price of cryptocurrencies, Hodlnaut said liquidation at current rates would not allow users to withdraw even their initial deposit.
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