Algorand Foundation Among Creditors Opposing Restructuring of Troubled Crypto Exchange Hodlnaut
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Oliver Knight is a CoinDesk reporter based between London and Lisbon. He does not own any crypto.
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Several of the largest creditors of troubled Singaporean crypto lender Holdnaut have indicated they want the company to be placed in liquidation as opposed to a restructuring, according to a court filing published by Hodlnaut’s judicial managers.
The creditors that oppose a restructuring include Samtrade Custodian Limited, which is currently in liquidation, and the Algorand Foundation. These creditors have claims worth $228 million Singaporean dollars (US$170 million).
The announcement published by Hodlanut’s judicial manager states that there is “no white knight investor” for the lender, leading to an absence of fresh capital.
Creditors initially indicated a preference for liquidation in January, with the Algorand Foundation stating in a court filing that liquidation would “maximize the company’s remaining assets available for distribution.”
In September, the Algorand Foundation declared that it had $35 million in exposure to Hodlnaut.
The Algorand token (ALGO) is currently trading at 18 cents, having dropped by 3.34% in the past 24 hours, according to CoinDesk data.
Edited by Aoyon Ashraf.
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Oliver Knight is a CoinDesk reporter based between London and Lisbon. He does not own any crypto.
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Oliver Knight is a CoinDesk reporter based between London and Lisbon. He does not own any crypto.
