Zipmex, a Thai crypto exchange currently facing financial distress, has proposed a restructuring plan that includes paying its creditors a fraction of their original claims. According to Bloomberg, the exchange is offering its creditors “about 3.35 cents” on the dollar of their initial claims.
This offer forms a key part of the company’s restructuring strategy as it grapples with $97 million owed to its customers.
Restructuring Proposal And Creditors’ Response
This restructuring proposal, while offering some relief, falls significantly short of the total amount owed. Zipmex’s move to offer such a percentage of repayment reflects its current financial challenges.
The company’s CEO, Marcus Lim, has refrained from confirming the exact details of this restructuring plan but has noted discrepancies in the figures reported by the media.
According to Bloomberg, major creditors of Zipmex have expressed their discontent with the proposed repayment plan. They call for an independent review of the company’s assets and liabilities, indicating a lack of confidence in the figures.
Furthermore, the proposal suggests increasing the repayment from 3.35 cents to 29.35 cents per dollar, but this is “contingent on the recovery” of the company’s financial status.
Zipmex’s Struggle For Stability
Zipmex’s financial woes became public in August 2022 when it filed for bankruptcy protection in Singapore, citing difficulties stemming from its $53 million exposure to crypto lenders Babel Finance and Celsius. This move came after the exchange suspended withdrawals in early July.
In the ensuing months, Zipmex has faced ongoing challenges, navigating through a complex financial landscape. The exchange has repeatedly petitioned the Singaporean court for extension
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Author: Samuel Edyme
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