Crypto lending platform Hodlnaut is making strides toward exiting bankruptcy with a potential white knight investor stepping in to offer a lifeline.
OPNX exchange has reportedly proposed to acquire 75% of the struggling company, subject to creditor approval.
The deal involves injecting approximately $30 million worth of FLEX tokens into Hodlnaut, which would partially cover creditors’ claims and outstanding payments.
FLEX tokens, the native currency of CoinFLEX exchange, were valued at $7.16 at the time of the report.
The restructuring process is currently being overseen by a Singapore court.
If accepted by the creditors, OPNX would gain a 75% stake in Hodlnaut post-capital infusion. Creditors, on the other hand, would receive either 30% of their claims in FLEX and other tokens or up to 95% of the available corporate assets pool on a pro-rata basis, depending on whichever option proves more lucrative.
These details were found in documents reviewed by Bloomberg.
Lam, a representative of OPNX, expressed optimism about the potential collaboration with Hodlnaut, praising the platform’s promise.
However, the final decision rests with the creditors, and the outcome remains uncertain. Back in April, the majority of Hodlnaut’s creditors had expressed their preference for liquidation over restructuring.
In a letter from the interim judicial manager (IJM), it was revealed that 55.38% of creditors, with claims totaling around 228.3 million Singapore dollars (approximately $170 million), were in favor of liquidation due to the absence of any fresh capital at the time.
Hodlnaut encountered a liquidity crisis in August 2022, prompting the suspension of withdrawals. To shield itself from legal actions, the platform was placed under judicial management under Singaporean law.
Hodlnaut had expressed its intention to avoid forced liquidation to prevent selling users’ cryptocurrencies, such as BTC, ETH, and WBTC, at a time when asset prices were significantly depressed.
OPNX, the potential savior, was founded by Mark Lamb and Sudhu Arumugam, who are also co-founders of CoinFLEX exchange.
The platform is powered by the FLEX token and includes other co-founders, such as Su Zhu and Kyle Davies, founders of the now-bankrupt hedge fund Three Arrows Capital. Zhu and Davies have been facing creditor pursuit in the United States concerning their bankruptcy proceedings.
The fate of Hodlnaut now hangs in the balance, with creditors having to decide whether to accept the deal proposed by OPNX or pursue liquidation as previously suggested.
Other Stories:
U.S. Senators Call for Crackdown on North Korea’s Cryptocurrency Funding of Nuclear Program
Latvia Sees Decline in Crypto Asset Purchases Amidst Concerns Over Fraud and Money Laundering
Coinbase CEO Affirms Commitment to US Amid Regulatory Uncertainty
