Singapore’s Supreme Court has approved a debt restructuring plan proposed by cryptocurrency lender Hodlnaut.
The court agreed with the arguments of the company’s management about the protection of assets during the “health measures” and appointed an interim administration. External management of Hodlnaut was transferred to the certified audit company EY Corporate Advisors.
Judicial administration is a method of debt restructuring in which an independent court administrator is appointed to administer the affairs, business and property of a company in financial difficulty, according to accepted Singaporean legal practice. The company receives temporary immunity from litigation by third parties, which makes it possible to rehabilitate.
Some Hodlnaut investors expressed the opinion that the introduction of external management would reduce the amount of compensation. Since all expenses for the salaries of court administrators will be deducted from the total debt mass, Hodlnaut must publish information about the cost of services.
Cryptocurrency lender Hodlnaut petitioned Singapore’s Supreme Court for relief from the company’s assets on Aug. 16, immediately after the suspension was announced.
Source: Bits
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