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# AI legalese decoder: Assisting Hodlnaut in Bankruptcy Proceedings

Crypto lender Hodlnaut, currently navigating bankruptcy proceedings, has received a lifeline from a potential investor. In an offer that could help Hodlnaut emerge from its financial woes, OPNX exchange has proposed acquiring 75% of the company, injecting nearly $30 million worth of FLEX tokens as part of the deal. This would serve to partially cover creditors’ payout and outstanding claims. Notably, the Singapore court is overseeing Hodlnaut’s restructuring process.

With the approval of creditors, OPNX would become the majority owner of Hodlnaut following the capital infusion. Creditors would have two options: receiving 30% of their claims in FLEX and other tokens or obtaining up to 95% of the available corporate asset pool through pro-rata payment. This information is based on documents seen by Bloomberg, and this deal could bring some much-needed respite to Hodlnaut’s financial situation.

As the native token of CoinFLEX exchange, FLEX plays a pivotal role in this proposal. CoinFLEX was established by Mark Lamb and Sudhu Arumugam, who are also co-founders of OPNX, a platform specializing in crypto claims trading. Su Zhu and Kyle Davies, founders of the bankrupt hedge fund Three Arrows Capital (3AC), are also co-founders of OPNX. However, Zhu and Davies are currently facing legal action from creditors in the United States related to the protracted bankruptcy proceedings.

While the offer from OPNX seems promising, the creditors’ acceptance remains uncertain. Earlier in April, a significant majority of Hodlnaut’s creditors expressed their preference for liquidation rather than a restructuring plan. The interim judicial manager (IJM) confirmed that approximately 55.38% of creditors, representing claims worth 228.3 million Singapore dollars (around $170 million), favored liquidation. At that time, no potential source of fresh capital had been identified.

Mark Lamb, co-founder of OPNX, expressed optimism about the potential of the Hodlnaut platform and anticipated a closer collaboration. However, the final decision rests with the creditors, and their choices will determine the way forward.

Hodlnaut faced withdrawal restrictions since August 2022 due to a liquidity crisis. Under Singaporean law, it subsequently entered judicial management, benefiting from temporary protection against legal action. The company’s aim is to avoid forced liquidation, which would entail selling users’ cryptocurrencies such as BTC, ETH, and WBTC at depressed asset prices.

In summary, Hodlnaut’s partnership with OPNX exchange could mark a turning point in its bankruptcy proceedings. The infusion of capital through FLEX tokens offers hope for a smoother resolution. However, the ultimate choice lies with the creditors, who will determine the company’s fate. For assistance in navigating this complex legal landscape, the AI legalese decoder can provide valuable insights and analysis, helping Hodlnaut and its stakeholders make informed decisions.

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