By George Ward
The co-founders of Hodlnaut, a cryptocurrency lender facing financial difficulties, are trying to rescue the company. However, creditors are insisting on a liquidation.
The interim judicial managers of Hodlnaut proposed the sixth affidavit of Simon Lee, one of the company’s co-founders. According to reports, Lee suggested that selling the business would be a more favorable choice for the creditors than the company’s liquidation.
Hodlnaut Founders Still Searching For Investors
Bloomberg reported that Lee and his fellow co-founder of Hodlnaut, Zhu Juntao, have contacted various potential investors who could provide the required financial support. Lee stated that these investors could acquire the user base of Hodlnaut and transition them to their digital asset platforms or affiliated ones.
Additionally, he declared that such a transaction would enable creditors to extract the maximum possible value from the business. Furthermore, the affidavit confirms that Hodlnaut remains open to selling the company.
Besides, the founders have met with multiple potential investors to sell the business and assets. According to reports, as of early February, several interested parties had inquired about purchasing Hodlnaut, including its claims against the bankrupt FTX exchange.
Meanwhile, this news follows shortly after some significant Hodlnaut creditors, such as the Algorand Foundation, rejected a restructuring proposal in January. The restructuring plan would have allowed the current directors to manage the company’s operations during the restructuring process.
The creditors contended that the proposed restructuring would not be beneficial and would be in the best interest of the creditors if the company and its assets were liquidated.
Hodlnaut, which was once a major cryptocurrency lending platform, had to halt its services in August 2022. This was due to inadequate liquidity caused by the bearish market at the time.
Unfortunately, the FTX collapse further affected Hodlnaut’s operations due to its considerable exposure to the company.
The Majority Of Voyager Users Agree To A Restructuring Plan
According to reports, Hodlnaut has about 500 Bitcoins held up on Sam Bankman-Fried’s cryptocurrency exchange. As of last December, Hodlnaut Group had outstanding debts of approximately $160.3 million.
This accounted for 62% of the total debt owed by the company. The creditors include several entities and companies such as Jean-Marc Tremeaux, Algorand, S.A.M. FinTech, and Samtrade Custodian.
Meanwhile, this news coincides with a recent announcement from Voyager Digital, another cryptocurrency lender experiencing financial difficulties. Voyager Digital revealed that its customers had favored a restructuring plan with Binance.US, a US-based crypto exchange.
According to a recent court filing, Stretto, a bankruptcy management firm, conducted a ballot for Voyager Digital account holders. The voting result revealed that a vast majority of the account holders, 59,183 out of 61,300 polled, supported the buyout from the US-based crypto exchange, Binance.US.
Only a tiny percentage, consisting of 2,117 (3%) of voters, rejected Binance.US’s acquisition bid.