The Zipmex bailout could face some challenges, as the crypto exchange investor is now asking to pay a fraction of his debt, as opposed to committing to make a 100% payment.
The troubled company, meanwhile, plans to further extend its creditor protection to seek new investors.
Zipmex takeover proposal takes a new turn
The Zipmex investor is offering to pay creditors of the Thai crypto exchange around 10-20% of the amount owed to them, as stated in a letter the company wrote to the court dealing with its restructuring. The new investor proposal is significantly different from the original takeover proposal, which promised full payment to creditors.
The letter, seen by Bloomberg, said the investor was seeking to significantly reduce the payment to creditors because Zipmex did not meet the conditions set out in the original takeover proposal. Although it does not mention the name of the investor, an unnamed source revealed that the unnamed entity was venture capital fund V Ventures.
As previously reported by CryptoPotato, V Ventures signed a deal with Zipmex in December 2022 to acquire 90% of the struggling crypto exchange for $100 million in cash and crypto tokens. The crypto portion of the payment was to be used to gradually unlock customers’ frozen wallets by April 2023.
However, Zipmex has not received the fourth installment of its investor’s payment which was due March 23, 2023, worth $1.25 million. The payment was to be used to fund working capital.
In July 2022, Zipmex, which has branches in Thailand, Singapore, Indonesia and Australia, halted withdrawals on its platform following its exposure to troubled crypto lenders Celsius and Babel Finance worth $53 million. of dollars. Shortly thereafter, Zipmex filed for bankruptcy protection from creditors and was granted three-month creditor protection by the Singapore High Court in August 2022, enabling it to propose a debt restructuring plan. .
Zipmex plans to further extend creditor protection window
Meanwhile, Zipmex’s latest creditor protection extension is set to expire in a few days on April 23. With the latest developments from its investor, the crypto exchange is seeking to ask the court to grant another extension to the creditor to be able to search for alternative investors, as stated in the letter.
Amid Zipmex’s troubles, the Thai Securities and Exchange Commission (SEC) has reportedly opened an investigation into the company’s activities, which is looking into whether the crypto exchange violates local laws.
Binance Free $100 (Exclusive): Use this link to sign up and receive $100 free and 10% off Binance Futures fees for the first month (terms).
PrimeXBT Special Offer: Use this link to sign up and enter code CRYPTOPOTATO50 to receive up to $7,000 on your deposits.