[ad_1]
The Zipmex rescue deal was threatened after the investor backtracked on its earlier promise to repay creditors fully.
Amid plans to rescue embattled crypto exchange Zipmex from insolvency, the investor has reportedly reneged on its promised 100% payment. According to reports, Zipmex’s rescue investor now seeks to pay only 10 to 20 cents on the dollar to the exchange’s creditors. This development proves shocking because the ‘unnamed’ investor initially pledged to repay Zipmex’s debts fully.
Zipmex’s lawyers, Morgan Lewis Stamford, confirmed the situation in a letter to the Supreme Court of Singapore that read:
“We are instructed that in early April 2023, the Subscriber has now verbally represented that the Subscriber is now only prepared to consider a compromise to creditors in the Schemes that results in a return to creditors of between 10c to 20c on the dollar of their existing debt.”
Zipmex Rescue Investor Believed to be V Ventures
Although Zipmex did not name the rescue investor in its letter, The Block deduced the identity as Thai VC firm V Ventures. According to the blockchain and crypto news outlet, V Ventures signed a $100 million deal with Zipmex late last year. In return, the venture capital firm received a 90% stake in Zipmex. The deal also dictated that V Ventures pay the Zipmex acquisition fee in installments as the digital asset exchange battled bankruptcy. However, despite starting on a good note, V Ventures defaulted on a fourth tranche payment worth $1.25 million in March. This payment failure left Zipmex unable to pay certain staff and at risk of liquidation. Capturing the grim situation last month, Zipmex co-founder Akalarp Yimwilai wrote to Zipmex Technology employees:
“The investor is committed to providing monthly tranche payments in order for us to make payroll each month. We have yet to receive the tranche payment despite numerous attempts; the investor remains unresponsive.”
Although Yimwilai expressed optimism that the due payment would arrive, the Zipmex co-founder also braced for the worst-case scenario.
“We are still hopeful that the transfer of the monthly tranche payment by the investor is only slightly delayed, but at this critical juncture, we have to prepare for all eventualities,” said he.
Presently, an inside source confirmed that the tranche has yet to arrive.
Zipmex Insolvency
Last July, Zipmex ran into trouble when it suspended client withdrawals due to its exposure to troubled crypto firms Babel Finance and Celsius. The estimated total exposure stood at $53 million and forced Zipmex to file for bankruptcy that same month. Two weeks into August 2022, the centralized digital asset exchange also secured more than three months of creditors’ protection. At the time, Zipmex revealed it was “working towards the return of assets from Babel Finance.”
Since then, the company has secured a rescue deal and further extended its protection from potential creditor lawsuits. Zipmex’s latest protection window from creditors expires on April 23rd. The company has until then to sort out its financial woes. However, per its letter to the Singaporean Supreme Court, Zipmex plans to apply for a further extension.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
[ad_2]
Source link