The Singapore-based crypto savings platform wants to obtain the appointment of a “managing insolvency administrator” after submitting its insolvency application, in order to be able to avert the impending insolvency and not have to completely cease operations.
As the savings platform announced today Tuesday, the company has applied to the competent insolvency court in Singapore for so-called “judicial management”. In this regard, it says:
“We aim to prevent the forced closure, because the associated sale of the remaining assets would be a suboptimal solution, since we would have to sell our customers’ cryptocurrencies in the form of BTC, ETH and WBTC at the weak current prices. We believe that the establishment of judicial management is the best way for all parties involved to recover.“
Judicial management is a mechanism in Singaporean law designed to make it easier for insolvent companies to continue their business operations and get back on their feet. Accordingly, companies can request the appointment of a managing insolvency administrator who will act as managing director over the period of the insolvency proceedings. However, the appointment of such an insolvency administrator can take several months, which is why the company in question has the right to propose a managing director on an interim basis until then.