Cryptocurrency exchange Zipmex, facing significant financial woes, has proposed a restructuring plan offering its creditors an initial payout of 3.35 cents per dollar owed, with potential further payments contingent on future recoveries. The company finds itself in a situation where it owes approximately $97 million to its clients.
According to a Nov. 29 Bloomberg report, Zipmex's proposed restructuring includes a provision for potential increments in payouts, possibly rising to 29.35 cents on the dollar, based on the economic recovery's progress. However, key creditors have expressed objections to the proposed plan and have called for an independent assessment of the firm's liabilities.
Although Zipmex CEO Marcus Lim refrained from confirming the specific details outlined in the restructuring plan cited by the media, he highlighted that the figures reported were deemed "inaccurate," as per the report. The cryptocurrency exchange, operating in Southeast Asia, encountered difficulties in the summer of 2022 when it sought bankruptcy protection in Singapore. Addressing the $53 million exposure to cryptocurrency lenders Babel Finance and Celsius remains a primary challenge for the company.
Zipmex has repeatedly sought extensions of its debt moratorium from a Singapore court as it endeavors to navigate its financial obligations. A vote among creditors regarding the current restructuring proposal is anticipated to take place in early December, as Bloomberg has reported.
In a move indicative of its tumultuous state, Zipmex announced in November that it would halt all digital asset trading activities in Thailand until January 31, 2024. The exchange has been under scrutiny by the Thai Securities and Exchange Commission since the beginning of 2023, adding to the regulatory and operational challenges the company faces.
