Source: blockchain.news
According to recent reports, bitcoin lending company Hodlnaut is collaborating with a number of potential buyers in an effort to sell its business and other assets.
According to a story published by Bloomberg on Feb. 6, various parties interested in acquiring Hodlnaut and their claims against the defunct cryptocurrency exchange FTX have shown interest in doing so.
After Hodlnaut filed for bankruptcy protection from its creditors, the company’s temporary court managers began receiving several takeover offers for the company’s Singapore-based cryptocurrency business. The report indicates, with reference to an affidavit, that the potential investors and receivers are now in the process of signing confidentiality agreements with each other.
According to what was allegedly stated in the affidavit, as of December 9, 2022, Hodlnaut Group owed a total of $160.3 million, representing 62% of the company’s outstanding debt, to various companies and organizations. such as the Algorand Foundation, Samtrade Custodian, SAM Fintech and Jean-Marc Tremeaux.
According to information that was previously disclosed, Hodlnaut’s FTX accounts held a total of 1,001 FTX (FTT) tokens, 514 Bitcoin (BTC), 1,395 Ether (ETH), 280,348 USD Coin (USDC) tokens, etc. The company reportedly has digital assets worth more than $18 million that are listed on centralized exchanges such as FTX, Deribit, Binance, OKX, and Tokenize.
Hodlnaut, which had been a major cryptocurrency lending platform in the past, was forced to cease operations in 2022 as a result of liquidity shortages caused by a large bear market. Following the suspension of withdrawals in August, Hodlnaut successfully petitioned a Singapore court for creditor protection, allowing the company to reorganize under court supervision. In their capacity as temporary receivers, the court selected Ee Meng Yen Angela and Aaron Loh Cheng Lee of EY Corporate Advisors.
The announcement comes several weeks after Hodlnaut’s creditors voted against a proposed restructuring plan and called for the liquidation of the platform’s assets. Instead, it was claimed that the creditors demanded a quick liquidation and distribution of the assets that still existed among the creditors in order to maximize the value that still remained.
Users can deposit bitcoins, which are then lent to borrowers in exchange for monthly interest payments through Hodlnaut, one of many organizations that specializes in providing services related to crypto lending. Several crypto lending platforms, including Celsius Network, BlockFi, Genesis, and Vauld, have experienced operational difficulties as a result of the crypto winter of 2022. There are many industry leaders who are of the opinion that crypto financing can still thrive. despite the bear market; however, certain requirements must first be met.
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