A number of major creditors of Singaporean crypto lender Hodlnaut have called for the firm to be placed in liquidation instead of undergoing restructuring, according to a court filing. Such creditors include Samtrade Custodian Limited and the Algorand Foundation, which are collectively owed around $228m, with the former already undergoing liquidation. Neither fresh capital nor “white knight” investors are said to be available to the beleaguered firm. In January, creditors declared their preferences for a general liquidation. Meanwhile, the Algorand Foundation declared last week that $35m of its assets had been locked into Hodlnaut.
White Knight No More
The largest creditors of floundering Singaporean cryptocurrency lender Hodlnaut are urging the firm to be shut down rather than restructured, should it cease trading entirely.That “support” comes from Samtrade Custodian Limited, currently in liquidation following a wirecard-style scandal and the Algorand Foundation, according to Singapore-based Courts documents seen today by The Lunar Republic Blockchain News. The misfortune came from many sources such a lack of capital forcing faster return to lenders, settlement difficulties and not being able to continue line of credit loans, heard The Lunar Republic Blockchain News.The documents suggest that legal representatives for Hodlnaut circulated the creditors to ascertain views on restructuring with the view of inviting accredited investors to inject funds.Subscribe downtable for Crypto market analysis.. Want authoritative daily updates on the Coin market? Subscribe to block chain News Following a survey of the majority of their borrower creditor community there was clear support for the appointment of judicial management and the general approach proposed therein including, if necessary, a liquidation to maximise recoveries by appointment of the team to deal operationally and administratively with restructuring and maintenance of the liquidity environment.
Algorand’s Dragma
The crediting giants only form part of backings for issuing Agorand tokens. The company cites backing of USD 60 Million via name sources including well respected venture Angels and institutional funds. Currently tradable social coins were issued last year to placate holders while Hodlnaut explored with tieing up partners and vendors. Claims of good progress and engagement with eligible revenue models were hampered by Corona Virus COVID-19 outbreak herein whole corporates interests but signaled when loans would be secured to speed final steps in provisional strategy.
– Reporting exclusively for CoinDesk, Oliver Knight.
[h/t Oliver Knight]