Creditors of Hodlnaut have reportedly rejected its restructuring proposal, preferring instead to liquidate the Singapore-based crypto firm.
Hodlnaut’s proposed restructuring plan has been rejected by its key creditors, according to a «Bloomberg» report citing a filing by the crypto firm’s court-appointed interim judicial managers.
Instead, there is a preference to liquidate Hodlnaut instead in order to «maximize the company’s remaining assets available for distribution», said Algorand Foundation, one of the creditors, in the filing.
Same Boss Rejected
Creditors specifically objected to a provision in the restructuring plan that would allow the Hodlnaut directors who oversaw the firm’s downfall to continue managing the business.
Since August 2022, Hodlnaut halted withdrawals and was placed under interim judicial management which granted it protection from creditors.
Separately, a January 13 hearing rejected an application to remove the interim judicial managers. Singapore’s police force also said in November that it is investigating Hodlnaut and its directors for potential cheating and fraud offenses.
