Zipmex may face challenges in its rescue plan as its investor is now proposing to pay only a fraction of its debt instead of making a 100% payment as previously pledged.
To seek out new investors, the distressed company is planning to further extend its creditor protection.
New Proposal to Buyout Zipmex
Zipmex’s investor is proposing to pay 10 to 20 percent of the amount owed to their creditors, as mentioned in the restructuring court’s letter. The new proposal is different from the original one, which promised to make a full payment to the creditors. The letter did not identify the investor by name, but an anonymous source revealed that it is venture capital fund V Ventures.
V Ventures signed a $100 million deal to acquire 90% of the troubled crypto exchange in December 2022, including cash and crypto tokens. Zipmex did not receive the fourth tranche of the payment due on March 23, 2023, worth $1.25 million, which was meant for working capital funding.
Zipmex sought bankruptcy protection from creditors and was granted a three-month creditor protection by the Singapore High Court in August 2022, following its exposure to troubled crypto lenders Celsius and Babel Finance worth $53 million. With Zipmex’s latest extension of creditor protection ending a few days from now, the crypto exchange is looking to ask the court to grant another creditor extension to seek alternative investors.
Zipmex’s Plans to Further Extend Creditor Protection Window
The Thai Securities and Exchange Commission began investigating Zipmex’s activities amid its troubles, probing to see if the crypto exchange violated local laws.