Hodlnaut believers want to spurn liquidation, renovation solution of the management
Hodlnaut believers want to spurn liquidation, renovation solution of the management
Hodlnaut, a crypto loan platform that has gone down due to the crypto winter, has been under judicial administration since August 2022
This decision protected the company from complaints that would have had to deal with in return for a much more detailed examination by the supervisory authorities.
The exposure of Terraform Labs was the main culprit
According to the Hodlnaut leadership-which allegedly destroyed several documents, which occupied the full extent of their connection to Terraform Labs-the main reason for their fall was the number of assets they had invested in the latter. As already reported, Cryptopotato Hodlnaut had invested around $ 190 million in VAT.
After the Hodlnaut management tried to keep the platform afloat, it finally registered bankruptcy and stood under judicial administration, explaining from the start that it was planning to restructure and return the platform.
Unfortunately, the decisive element for restructuring, namely fresh financing, remained from.
no silver strip
Already at the beginning of this year it was clear that the creditors would not see any great hopes in the resurrection of Hodlnaut and prefer to recover at least part of their assets after the liquidation.
A new document published by the consultants Ernst & Young confirms that a restructuring process is "unlikely to achieve".
The document confirms that despite all the efforts of Hodlnaut, the company could not find a potential investor who could provide the liquidity that it would make it brisk again.
In addition, the paper shows that the creditors who hold the lion's share of the claims - about 55.38 % - voted for complete liquidation. The creditors who prefer a renovation solution control only 2.42 % of the claims against Hodlnaut, a large part of which actually seems to be controlled by the company's directors.
As a result, the courts have decided on liquidation if the circumstances remain unchanged.
"The lawyer of Mr. Simon Eric Lee confirmed that no new financial injection was available. Under these circumstances, the court decided that it was not convinced that a potential compromise and/or an agreement could be approved without a new financial injection, and therefore indicated that the IJMS should continue to submit an application for the company's dissolution as IJM."
The mediation proposal was vehemently rejected, especially by large creditors such as Samtrade Custodian and the Algorand Foundation, which was difficult to meet by the collapse of 3AC and Hodlnaut.