Cryptocurrency lender Hodlnaut has applied to the Supreme Court of Singapore for legal protection of the company’s assets from creditors’ claims.
After agreeing on the company’s restructuring plan with lawyers, Hodlnaut filed a petition with the Supreme Court of Singapore to place the restructuring or possible bankruptcy of the company under the control and control of the judiciary. The move would allow Hodlnaut to focus entirely on “health measures” and prevent the company’s creditors from filing suits for forfeiture of assets.
“We are looking to avoid forced liquidation of our assets as this is a sub-optimal solution that would require us to sell cryptocurrencies such as BTC, ETH and wBTC at the current discounted asset prices. Instead, we believe that the passage of judicial review will give the best chance for the stabilization of the company. Therefore, on August 13, Hodlnaut filed an application with the Supreme Court of Singapore to transfer the cases to judicial administration, ”says Hodlnaut.
In the practice of the Singapore judiciary, judicial administration is a legal mechanism provided by law for companies in financial distress. In this process, instead of the directors of the company, an independent official is appointed to manage the company – a court administrator. In addition, the provisions of the Judicial Administration impose a moratorium on all claims and proceedings against a company administered by the Court.
Earlier, crypto lending platform Hodlnaut suspended withdrawals, crypto asset exchanges and deposits, stating the need to “focus on stabilizing liquidity.”
Source: Bits
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