Zipmex Filed For 2 Months Extension Of Bankruptcy Agreement

Key Points:

• Zipmex requested a two-month extension to the Singapore court overseeing its bankruptcy restructuring.
• The request was issued after a possible takeover investor failed to make planned payments.
• V Ventures alleges that the Scheme of Arrangement has expired and that the agreement no longer binds it.

Troubled cryptocurrency exchange Zipmex has filed for a two-month extension to its moratorium agreement to the Singapore court handling its bankruptcy reorganization, according to an announcement.

The request was made after an investor had failed to make scheduled payments involved in a potential takeover.

The investor, which is reportedly Thai investment firm V Ventures, claims that the Scheme of Arrangement has lapsed and that it is no longer bound by the agreement.

Zipmex’s rescue plan could face some challenges as the crypto exchange’s investor is now asking to pay a fraction of its debt, as against the pledge to make a 100% payment.

V Ventures, a subsidiary of Thoresen Thai Agencies Pcl, offered to buy Zipmex for about $100 million. But the deal started fraying late last month when Zipmex said it hadn’t received the most recent payment due under the proposed deal. In March, it was reported that the investor missed a $1.25 million payment.

The distressed company is, meanwhile, planning to further extend its creditor protection to seek out new investors.

Zipmex’s investor is proposing to pay the Thai crypto exchange’s creditors about 10 to 20 percent of the amount owed to them, as stated in a letter the firm wrote to the court in charge of its restructuring. The investor’s new proposal is significantly different from the original buyout proposal, which promised to make a full payment to creditors.

Zipmex’s latest update hints at further delays in withdrawals, the company is aware of the impact that the Investor’s new position will have on the reopening schedule for Z Wallet, although the company said that it would negotiate with the investor to maximize returns.

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Harold

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