Getting your Trinity Audio player ready...
|
Zipmex’s creditors could be getting back their deposits in the coming weeks following the court’s approval of the exchange’s restructuring plan.
On March 30, the Singapore High Court approved Zipmex’s scheme of arrangement, bringing creditors a step closer to receiving their trapped funds. According to the announcement, the court approved the creation of an “Administrative Convenience Class” made up of creditors with assets under $5,000 in their Z Wallets.
The court also extended Zipmex’s moratorium by an additional three weeks to protect the embattled cryptocurrency exchange from lawsuits from disgruntled customers. However, the judge ordered Zipmex to provide regular updates to the court and its creditors over the status of the restructuring plan.
Zipmex’s restructuring plan has been in the works since it obtained its first three-month moratorium in 2022. The process included an assessment of the firm’s financial position, communications with creditors, and a proposal of the restructuring plan to all interested parties.
“Broadly speaking, if the scheme is passed and the restructuring is completed, this will allow for each customer to be made whole with the full reactivation of Z Wallets so that customers can withdraw 100% of their digital assets,” read a statement on Zipmex’s wallet.
Zipmex confirmed that the scheme of arrangement will be executed in a simultaneous process across all affected countries. KordaMentha served as Zipmex’s financial adviser while Morgan Lewis Stamford LLC offered legal counsel during the process.
Zipmex’s exposures to Babel Finance and Three Arrows Capital (3AC) forced the exchange to halt withdrawals for its customers. Since the implosions, Zipmex has been in and out of court seeking to placate its creditors and find a way out of the debacle.
One step forward, two steps back
Zipmex’s plans to be acquired by Singapore-based venture capital firm V Ventures have suffered a major hitch after the VC firm missed the deadline of a $1.25 million payment due on March 23. The missed payments forced Zipmex to announce that it will be bringing down the curtain on its technology arm and laying off the unit’s employees.
Since Zipmex and V Ventures entered into a $100 million acquisition deal, the VC firm has missed four payments, casting a dark cloud over its hopes of being acquired. The missed payment was earmarked to provide working capital for Zipmex over the coming months with the exchange confirming that it still has healthy reserves to pay the salaries of its remaining staff.
Watch: The Future of Digital Asset Exchanges & Investment
New to blockchain? Check out CoinGeek’s Blockchain for Beginners section, the ultimate resource guide to learn more about blockchain technology.