(Kitco News) -
Hodlnaut, the insolvent Singapore-based crypto lender, has received multiple inquiries from potential buyers, according to an affidavit quoted by a Bloomberg report published Monday.
“Various parties who are interested in acquiring” Hodlnaut's platform, along with their claims against the FTX cryptocurrency exchange, have contacted the court-appointed managers overseeing the company’s protection from creditors.
According to the affidavit, the managers are “in the process of signing non-disclosure agreements with the potential investors.” The document shows that Hodlnaut Group owes $160.3 million, or 62% of their outstanding debt, to four creditors: Algorand Foundation, Samtrade Custodian, S.A.M. Fintech and Jean-Marc Tremeaux, as of Dec. 9, 2022.
FTX held approximately 72% of the digital assets Hodlnaut had on centralized exchanges with a market value of $14 million.
On Jan. 19, key creditors including Algorand rejected a proposed restructuring plan in favor of liquidating the company. Algorand wrote in a court filing that this should be done as soon as possible “to maximize the company’s remaining assets available for distribution.”
Hodlnaut suspended withdrawals, swaps and deposits on Aug. 8, and laid off 80% of its staff on Aug. 19 as it fought to stay afloat in the wake of the collapse of TerraUSD, Celsius and Singapore-based Three Arrows Capital. On Aug. 29, a Singapore court approved the firm for creditor protection and placed it under judicial management to prevent a potential forced liquidation.
The potential buyers have not yet been named.
