Zipmex Proposes Restructuring Plan with Reduced Repayment
Zipmex, a struggling Thai crypto exchange, has put forward a restructuring plan that involves paying its creditors a fraction of what they are owed. The exchange is offering around 3.35 cents on the dollar of the initial claims, which is part of its strategy to address the $97 million debt to its customers.
Creditors Express Discontent
While this proposal provides some relief, it falls significantly short of the total amount owed. Zipmex’s CEO, Marcus Lim, has not confirmed the exact details but has acknowledged discrepancies in the reported figures. Major creditors have expressed their dissatisfaction and called for an independent review of the company’s assets and liabilities.
The proposal also suggests increasing repayment to 29.35 cents per dollar, contingent on the company’s financial recovery.
Struggles Faced by Zipmex
Zipmex faced financial difficulties in August 2022 when it filed for bankruptcy protection in Singapore due to its exposure to crypto lenders Babel Finance and Celsius. The exchange has since petitioned for extensions on its debt moratorium multiple times. The outcome of the creditors’ vote on the restructuring plan, scheduled for early December, is crucial for Zipmex’s future.
In addition, Zipmex recently announced a pause in its trading operations in Thailand to comply with regulatory requirements set by Thailand’s Securities and Exchange Commission (SEC).
Suspension of Trading Operations
As of November 25, 2023, at 1:00 PM, Zipmex suspended its trading operations in Thailand to ensure adherence to SEC regulations. The company has provided alternative withdrawal procedures for customers and will suspend withdrawals through its website and mobile application after January 31, 2024.
Hot Take: Zipmex Faces Uphill Battle in Restructuring Efforts
Zipmex’s proposed restructuring plan, which offers reduced repayment to creditors, highlights the extent of the exchange’s financial challenges. The dissatisfaction among major creditors and the call for an independent review indicate a lack of confidence in the company’s figures. With ongoing struggles and a critical juncture ahead, Zipmex’s future hinges on the outcome of the creditors’ vote on the restructuring plan.
Sources: Bloomberg, Zipmex, Crypto Triumph
Image source: Unsplash, Chart from TradingView
By
By
By