Zipmex Proposes Repayment of 3.35 Cents Per Dollar to Creditors in Latest Restructuring Plan

cryptonews.com:

Zipmex has put forward a new proposal to repay creditors, initially offering 3.35 cents for each dollar of their claims as part of its restructuring efforts, according to Bloomberg.

This initial payout is part of a broader plan to address the crypto exchange’s $97.1 million debt and is contingent on the future recovery of assets, according to “people familiar with the matter.” The proposal could potentially increase the repayment to as much as 29.35 cents per dollar, depending on the success of these recovery efforts.

The sources also addressed that major creditors have expressed reservations about Zipmex’s latest plan. They are advocating for an independent review to closely examine the recent changes in the company’s assets and liabilities as reported in the October 4 court document. This scrutiny is seen as crucial for ensuring transparency and fairness in the restructuring process.

Zipmex’s Group Chief Executive Officer Marcus Lim commented on the situation, stating, “I am unable to comment on the on-going scheme of arrangement as this is confidential.” He acknowledged the presence of inaccuracies in the information obtained from the sources but chose not to elaborate on them.

The proposal comes in the wake of a challenging period for the crypto exchange, which has been grappling with the fallout from last year’s rout in crypto prices. Zipmex, operating across Thailand, Indonesia, Australia, and Singapore, is currently undergoing restructuring supervised by a court in Singapore.

A prior attempt to sell Zipmex to V Ventures, a subsidiary of Thoresen Thai Agencies, did not materialize. Additionally, last week, Thailand‘s securities regulator instructed Zipmex to suspend its operations in the country due to insufficient net