Zipmex Proposes Cents-on-Dollar Repayment Amid Financial Struggles and Regulatory Scrutiny
Summary:
Thailand-based cryptocurrency exchange, Zipmex, facing financial difficulties, proposes a repayment plan of 3.35 to 29.35 cents per dollar, depending on its recovery progress. Creditors, dissatisfied with the proposal and are demanding a third-party review. Zipmex currently owes $97 million to its clients and is seeking more time to manage its $53 million exposure to crypto lenders, Babel Finance and Celsius. The company, under the local Securities and Exchange Commission's investigation, plans to suspend all digital trading by January 31, 2024.
Zipmex, a troubled cryptocurrency exchange based in Thailand, has proposed to its creditors a repayment of 3.35 cents on the dollar of their initial claims and further repayments depending on the recovery of the company. The company, which owes $97 million to its clients, presented this plan as part of its restructuring proposal. A report by Bloomberg on November 29 suggests that Zipmex might increase this amount to 29.35 cents per dollar, subject to the progress of their recovery. However, main creditors have expressed dissatisfaction with this plan and called for a third-party review of the company's debts. Zipmex CEO, Marcus Lim, declined to validate the details of the restructuring plan as described, while hinting at some inconsistencies in the figures quoted in the media.
The disharmony began for Zipmex in the summer of 2022 when the company sought bankruptcy protection in Singapore, asking for space to strategize on how to manage its $53 million exposure to crypto lenders Babel Finance and Celsius. Zipmex has consistently requested an extension of the debt moratorium from the Singaporean court.
Vote by the creditors on the present restructuring proposal is due to take place in early December, according to Bloomberg. The exchange in November confirmed its plan to halt all digital asset trading in Thailand by January 31, 2024. Since early 2023, Zipmex has been subjected to an investigation by the local Securities and Exchange Commission.
Published At
11/29/2023 9:40:13 AM
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