The Zipmex rescue deal had come under threat after the investor reneged on its earlier promise to fully repay the creditors.
Amid Plans To Save Beleaguered Crypto Exchange Zipmex From Bankruptcy, Investor Has Reportedly Said retracted On your promised 100% payment. Zipmex’s rescue investors are now reportedly willing to pay creditors of the exchange only 10 to 20 cents on the dollar. The development turned out to be shocking as the ‘unnamed’ investor had initially promised to repay Zipmex’s debt in full.
Morgan Lewis Stamford, a lawyer for Gipmex, confirmed the position in a letter to the Supreme Court of Singapore:
“We are instructed that as of early April 2023, Subscriber has now verbally represented that Subscriber is now only prepared to consider a settlement with creditors in those plans that would result in a 10c on the dollar of their existing From 20c get returns to creditors. Debt.”
Zipmax rescue investor considered V Ventures
However, Zipmex did not name the rescue investor in its letter to The Block. identified 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 got a 90% stake in Zipmex. The deal also stipulated that V Ventures pay the Zipmex acquisition fee in installments as the digital asset exchange grapples with bankruptcy. However, despite a good start, V Ventures error Upon payment of the fourth tranche of $1.25 million in March. This payment failure left Zipmex unable to pay some employees and threatened liquidation. Noting the dire situation over the past month, Zipmex co-founder Aklarp Yimvilai wrote to Zipmex Technology employees:
“The investor has committed to provide monthly installment payments for us to make payroll every month. We are yet to receive the installment payments despite several attempts; the investor remains unresponsive.
Although Yimvilai expressed optimism that due payments would come, the Zipmex co-founder also prepared for the worst.
“We are still hoping that there is only a slight delay in transfer of monthly installment payments by the investor, but at this critical juncture, we have to be prepared for all eventualities,” he added.
As of now, an insider has confirmed that the installment is yet to arrive.
gipmex bankruptcy
Last July, Zipmex ran into trouble after it suspended customer withdrawals due to its exposure to troubled crypto firms Babel Finance and Celsius. The estimated total exposure was $53 million and it forced Gipmex file for bankruptcy Same month Two weeks into August 2022, the centralized digital asset exchange also secured more than three months of creditor protection. At the time, Zipmex revealed that it was “working towards returning assets from Babel Finance.”
Since then, the company has secured a rescue deal and further increased its protections from potential creditor lawsuits. Zipmax’s latest security window from creditors expires on April 23. The company has to overcome its financial problems till then. However, Zipmex plans to apply for further extension, according to its letter to the Supreme Court of Singapore.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to strip crypto stories down to the basics so that anyone anywhere can understand without a lot of background knowledge. When he is not delving deep into crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
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