The company's Singapore-based password lending company Hodlnaut is working on a possible settlement as the company's creditors reject the proposed restructuring plan and look for assets to settle the site.

The creditors Group rejected the proposal of the restructuring plan, which allows serving executive directors to supervise the operation of the company during the restructuring process. However, the hearing system on Jan. 12 rejected an application to remove temporary judicial managers, according to Bloomberg News.

The creditor felt that the restructuring plan would not help and that the preferential price and the remaining assets of the liquidation company were in his best interest. The Al Goran Charitable Foundation, one of Hodlnaut's important creditors, calls for the settlement of the remaining assets immediately, and the distribution of the remaining assets among the creditors, and to achieve a greater relative surplus value.

Hodlnaut's troubles first surfaced in August 2022, when the company stopped withdrawing cash because of unstable market conditions and lack of liquidity. But then, according to media reports, the login password borrower weakened its openness to the desperate Terra ecosystem, losing nearly $190 million. This management then deleted more than a thousand documents related to his project investment to cover his leverage ratio.

The data encryption loan company seeks judicial management in accordance with Singaporean law to prevent forced liquidation. The company was finally listed as a creditor maintenance plan in August and expects to use the management methodology to restore its asset-to-liability ratio to normal at 1:1 and to allow customers access to their initial digital currency savings. However, the judicial management project funded by the Government has not provided much assistance to its work.

Late in November 2022, the company's founders were investigated for eliminating the open and fabricated facts about their dynamic passwords for special login passwords. The survey is based on several types of reports made by investors during the period from August to November 2022.

As of the time of release, Hodlnaut and the Al Goran Charitable Foundation did not respond to Cointelegraph's request for comment.