Hodlnaut's main creditors, including Algorand Foundation, reject the restructuring plan, saying they want to liquidate the company to maximize "remaining assets available for distribution," Bloomberg reports.
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The plan proposed by Hodlnaut's former top-managers would allow them to continue managing the business. However, the creditors apparently don't want this as Singapore's police is investigating the company for potential fraud.
In November 2022, interim judicial managers found that Hodlnaut had suffered a $190 million loss due to the Terra crash. They noted in a report that Hodlnaut's top management apparently had "downplayed the extent of the group's exposure" to the Terra crash not only during the period leading up to the crash, but also after it.
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