Hodlnaut Co-Founders Propose Selling Business to Maximize Value for Creditors
Troubled cryptocurrency lender Hodlnaut's co-founders propose a new plan that would better benefit creditors.
According to Bloomberg on March 1, the co-founders of Hodlnaut, Simon Lee and Zhu Juntao have proposed to sell their business instead of liquidating its assets.
The crypto lender filed for bankruptcy protection in August after losing $190 due to the Terra-Luna collapse.
An interim judicial manager was appointed to manage its affairs, and a restructuring plan was proposed to pool the company’s assets and issue a new token to creditors.
However, some creditors rejected the plan and sought to liquidate the company.
Lee and Juntao have submitted an affidavit to the court seeking to sell the business, stating that it would maximize value for creditors and increase the user base of investors.
The co-founders are reportedly in discussions with potential investors to finalize the details of the sale.