OPNX exchange makes a proposal for Hodlnaut, If the agreement is accepted, Hodlnaut would receive a capital infusion of almost $30 million worth of FLEX tokens to help pay off creditors and settle unpaid claims.
Hodlnaut, a cryptocurrency lender, looks to have located a white knight investor to help it exit bankruptcy. A 75% takeover bid has reportedly been made by the OPNX exchange, according to a Bloomberg article. In order to partially pay off creditors’ claims and other obligations, Hodlnaut would get a capital infusion of almost $30 million worth of FLEX tokens under the terms of the agreement.
FLEX is currently trading at $7.16, according to CoinMarketCap. A Singapore court is monitoring Hodlnaut’s restructuring. OPNX would own 75% of Hodlnaut after the capital infusion, if the creditors gave their approval. Depending on which is higher, creditors would get a pro-rata payment of up to 95% of the available corporate asset pool or 30% of their claims in FLEX and other tokens.
The native coin of the CoinFLEX exchange is called FLEX. It was created by Mark Lamb and Sudhu Arumugam, who also co-founded OPNX, a new platform for exchanging cryptocurrency claims. The FLEX coin also powers the platform. Su Zhu and Kyle Davies, who also started the insolvent hedge fund Three Arrows Capital (3AC), were additional co-founders of OPNX. The United States’ creditors are pursuing Zhu and Davies because their bankruptcy processes are taking so long.
If the creditors accept the proposal remains to be seen. The majority of Hodlnaut’s creditors said in April that they wanted to liquidate the business. Users representing approximately 55.38% of creditors have stated they would prefer liquidation over restructuring in a letter from the interim judicial manager (IJM), with claims totaling 228.3 million Singapore dollars (around $170 million). The letter said that no new capital source had been identified at the time.
Lam reaffirmed, “We see a lot of potential in the Hodlnaut platform and look forward to working more closely with them.”
Due to a financial situation, Hodlnaut stopped withdrawals in August 2022. Since that time, it has been protected from legal action by judicial management under Singaporean law. The company stated at the time, “We are aiming to avoid a forced liquidation of our assets as it will require us to sell our users’ cryptocurrencies such as BTC, ETH and WBTC at these current depressed asset prices.”