According to information from the renowned audit firm EY, despite a series of restructuring efforts to avoid a failed liquidation, Hodlnaut is now selling its assets as requested by creditors.
Creditors have expressed a preference for liquidation over Hodlnaut’s proposed restructuring plans. Notably, the Algorand Foundation, one of Hodlnaut’s creditors, also stated in court documents that liquidation would “maximize the remaining assets of the company for distribution back to the creditors.”
In addition to asset liquidation, creditors have requested the removal of two previously appointed legal managers, which the court rejected.
Hodlnaut faced significant fallout from Terra’s collapse in May 2022, leading to the company declaring bankruptcy. However, to avoid creditors’ wrath and for other reasons, Hodlnaut filed for legal management and appointed Angela and Cheng Lee as interim legal managers.
To avoid selling assets at low prices, the company had to lay off approximately 80% of its workforce. Nevertheless, despite all efforts, Hodlnaut still had to go through the liquidation process.
The path to bankruptcy for Hodlnaut has been rocky, but the recent developments in the liquidation and bankruptcy proceedings indicate a potential light at the end of the tunnel for the company’s creditors.
Hodlnaut is currently preparing to join other lending platforms like BlockFi and Celsius in emerging from bankruptcy.