Re Hodlnaut Pte Ltd: Interim Judicial Management Application by Cryptocurrency Platform

Hodlnaut Pte Ltd applied to the General Division of the High Court of Singapore for the appointment of interim judicial managers. The court, presided over by Aedit Abdullah J, granted the application, finding that the assets of the company were in jeopardy and that interim judicial management would help preserve them until a full judicial management order could be considered. The court appointed insolvency practitioners from Ernst & Young as interim judicial managers.

1. Case Overview

1.1 Court

General Division of the High Court

1.2 Outcome

Interim judicial management order granted.

1.3 Case Type

Insolvency

1.4 Judgment Type

Brief Remarks

1.5 Jurisdiction

Singapore

1.6 Description

Hodlnaut Pte Ltd applied for interim judicial management. The court granted the order, appointing interim judicial managers to preserve the company's assets.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Hodlnaut Pte LtdApplicantCorporationApplication GrantedWon
Algorand Foundation LtdOtherCorporationNeutralNeutral
Samtrade Custodial LimitedRespondentCorporationStatus as contingent creditor recognisedNeutral
S.A.M. Fintech Pte LtdOtherCorporationNeutralNeutral
Kong Xie ShernOtherIndividualNeutralNeutral
Brian Gothong TanOtherIndividualNeutralNeutral

3. Judges

Judge NameTitleDelivered Judgment
Aedit AbdullahJudge of the High CourtYes

4. Counsels

Counsel NameOrganization
Ong Ziying ClementDamodara Ong LLC
Ning JieDamodara Ong LLC
Leonard Chua Jun YiDamodara Ong LLC
Darius Malachi Lim Wen HongDamodara Ong LLC
Lim Dao Yuan KeithDamodara Ong LLC
Daniel ChanWongPartnership LLP
Levin LowWongPartnership LLP
Patrick AngRajah & Tann Singapore LLP
Ho ZiweiRajah & Tann Singapore LLP
Gerard QuekPDLegal LLC
Mato KotwaniPDLegal LLC
Glenn ChuaPDLegal LLC
Abraham Vergis SCProvidence Law Asia LLC
Lim MingguanProvidence Law Asia LLC

4. Facts

  1. Hodlnaut Pte Ltd applied for the appointment of interim judicial managers.
  2. Samtrade Custodial Limited claimed to be a contingent creditor of Hodlnaut Pte Ltd.
  3. Concerns were raised about the independence of the nominees proposed by both Hodlnaut and Samtrade.
  4. The court found that the assets of Hodlnaut were in some jeopardy.
  5. The directors and management of Hodlnaut were potentially liable for insolvent trading.
  6. The court determined that an interim judicial management order would help preserve the assets.

5. Formal Citations

  1. Re Hodlnaut Pte Ltd, , [2022] SGHC 209

6. Timeline

DateEvent
Hearing date
Initial hearing
Hearing date
Interim judicial management order granted

7. Legal Issues

  1. Appointment of Interim Judicial Managers
    • Outcome: The court appointed insolvency practitioners from Ernst & Young as interim judicial managers.
    • Category: Procedural
    • Sub-Issues:
      • Independence of Nominees
      • Conflict of Interest
  2. Recognition of Contingent Creditor
    • Outcome: The court recognised Samtrade Custodial Limited as a contingent creditor.
    • Category: Procedural

8. Remedies Sought

  1. Appointment of Interim Judicial Managers

9. Cause of Actions

  • Application for Interim Judicial Management

10. Practice Areas

  • Insolvency
  • Restructuring
  • Corporate Law

11. Industries

  • Cryptocurrency
  • Financial Services

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Re KS Energy and another matterHigh CourtYes[2020] 5 SLR 1435SingaporeCited for the criteria and rationale for making an order for interim judicial management.
Jepak Holdings Sdn Bhd v TNB Repair and Maintenance Sdn Bhd & OrsMalaysian CourtYes[2021] 11 MLJ 625MalaysiaCited for the proposition that a mere perceived notion of conflict is not sufficient to disqualify a proposed nominee's appointment.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Insolvency, Restructuring and Dissolution Act (No 40 of 2018)Singapore
Sections 91, 92 and 99 of the Insolvency, Restructuring and Dissolution Act (No 40 of 2018)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Interim Judicial Management
  • Judicial Management
  • Insolvency
  • Contingent Creditor
  • Insolvent Trading
  • Nominees
  • Independence

15.2 Keywords

  • Interim Judicial Management
  • Hodlnaut
  • Samtrade
  • Insolvency
  • Cryptocurrency

17. Areas of Law

Area NameRelevance Score
Insolvency Law95
Interim Judicial Management92
Judicial Management90
Restructuring and Dissolution85
Civil Procedure30

16. Subjects

  • Insolvency
  • Restructuring
  • Corporate Law