Zipmex Investors In Shock As Rescue Deal Offers Just 10-20 Cents On The Dollar
Key Points:
- Zipmex’s rescue investor now wants to give only 10 to 20 cents on the dollar to the troubled exchange’s creditors.
- V Ventures originally signed a $100 million deal with the company late last year in return for a 90% stake in it.
- Zipmex is at risk of liquidation and has until April 23 to sort out its financial issues.
Zipmex has been facing a financial crisis. In the latest development, the rescue investor who pledged to provide 100% payment to creditors, has now changed their stance.
According to Zipmex’s lawyers, the investor has verbally communicated that they are now only willing to offer creditors a return of 10c to 20c on the dollar of their existing debt. This is a significant reduction from their initial promise and has caused further distress to the already troubled exchange’s creditors.
Although Zipmex did not name the investor, it is believed that V Ventures had signed a $100 million deal with the company late last year in return for a 90% stake in it. However, the investor missed out on paying a fourth tranche worth $1.25 million to Zip, which has left the company unable to pay specific staff and at risk of liquidation.
Zipmex’s troubles began last July when it halted client withdrawals due to its exposure to Babel Finance and Celsius. These two crypto lenders froze customer funds in June, and Zip has estimated its total exposure to Babel and Celsius to be $53 million.
As the deal with V Ventures is increasingly at risk of falling through, Zipmex has identified at least two potential investors in Thailand, according to a letter sent to its creditors. However, with the company’s protection from creditors expiring on April 23, Zipmex has only a limited amount of time to sort out its financial issues. In the meantime, it plans to apply for a further extension.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Annie
Coincu News
Author
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Zipmex Investors In Shock As Rescue Deal Offers Just 10-20 Cents On The Dollar
Key Points:
- Zipmex’s rescue investor now wants to give only 10 to 20 cents on the dollar to the troubled exchange’s creditors.
- V Ventures originally signed a $100 million deal with the company late last year in return for a 90% stake in it.
- Zipmex is at risk of liquidation and has until April 23 to sort out its financial issues.
Zipmex has been facing a financial crisis. In the latest development, the rescue investor who pledged to provide 100% payment to creditors, has now changed their stance.
According to Zipmex’s lawyers, the investor has verbally communicated that they are now only willing to offer creditors a return of 10c to 20c on the dollar of their existing debt. This is a significant reduction from their initial promise and has caused further distress to the already troubled exchange’s creditors.
Although Zipmex did not name the investor, it is believed that V Ventures had signed a $100 million deal with the company late last year in return for a 90% stake in it. However, the investor missed out on paying a fourth tranche worth $1.25 million to Zip, which has left the company unable to pay specific staff and at risk of liquidation.
Zipmex’s troubles began last July when it halted client withdrawals due to its exposure to Babel Finance and Celsius. These two crypto lenders froze customer funds in June, and Zip has estimated its total exposure to Babel and Celsius to be $53 million.
As the deal with V Ventures is increasingly at risk of falling through, Zipmex has identified at least two potential investors in Thailand, according to a letter sent to its creditors. However, with the company’s protection from creditors expiring on April 23, Zipmex has only a limited amount of time to sort out its financial issues. In the meantime, it plans to apply for a further extension.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Annie
Coincu News
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