OPNX exchange submitted a bid offering capital injection to the embattled Hodlnaut crypto lender. The exchange offers to settle Holdnaut’s outstanding obligations and creditors’ payout partially.
OPNX intends to allocate nearly $30 million of capital injection comprising FLEX tokens. The injection makes OPNX the white knight investor that will facilitate the Singaporean crypto lender’s exit bankruptcy proceedings.
OPNX Acquiring Three-quarter Holdnaut Ownership
A revisit of the Bloomberg publication indicated that the OPNX exchange would gain 75% ownership of the troubled Singaporean crypto lending platform Holdnaut.
The approval of the proposed offer from OPNX would involve the FLEX tokens that Coinmarketcap shows exchanging hands at $6.58. Nonetheless, OPNX is awaiting the nod from the Singaporean court overseeing the Holdnaut’s restructuring.
Creditors’ approval of the deal would grant OPNX three-quarter ownership of Hodlnaut following the capital infusion. The Bloomberg report indicated that creditors would benefit from 30% of claims settled in FLEX and other digital tokens. Alternatively, they can receive a pro-rata payment to a maximum of 95% of the corporate asset pool.
CoinFLEX Exchange Founders Optimistic of Holdnaut Potential
Mark Lamb, who cofounded CoinFLEX alongside Sudhu Arumugam, welcomed the involvement of FLEX tokens. In particular, Lamb profiled the Hodlnaut platform as one with a potential reason for the close involvement with the crypto lender.
FLEX involves the native token associated with the CoinFLEX exchange. Lamb and Arumugam also identify with establishing OPNX. Such involves the marketplace facilitating claims trading and leverages the FLEX token to power its operations.
Lamb teamed up with Su Zhu and Kyle Davies, who cofounded the Three Arrows Capital (3AC) bankrupt hedge fund. Nonetheless, the duo is battling creditors’ pursuit over claims involving 3AC bankruptcy proceedings.
The Bloomberg publication was noncommittal on the probability of creditors accepting the deal. Previously, Hodlnaut’s creditors declared their desire to liquidate the crypto lender.
Creditors Support Liquidation in April Letter
A letter penned by the interim judicial manager (IJM) illustrated that 55.38% of creditors whose claims were estimated at $170 million favored liquidation. By April, the embattled crypto lender had not received fresh capital injection offers. Under such circumstances, creditors ruled out restructuring.
Hodlnaut cited the liquidity crisis to freeze withdrawals in August 2022. The crypto lender has remained under judicial management, leveraging a temporary shield from legal proceedings as stipulated under Singaporean law.
Holdnaut admitted it intends to avert forced liquidation of its assets. Avoiding mandatory liquidation will save it from selling the users’ cryptos, including WBTC, ETH, and BTC. Selling the assets at prices suppressed by the prolonged crypto winter.
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