Zipmex’s Restructuring Plan Greenlighted by the Singapore High Court
Singapore’s lower division of the Supreme Court approved Zipmex’s pre-packaged plan to restructure some of its operations and thus enable customers to receive portions of their deposits.
The Thai-based crypto exchange suspended clients’ withdrawals in July last year, citing volatile market conditions. It could not cope with the issues and filed for bankruptcy protection shortly after.
- Zipmex announced in a recent blog post that the Singapore High Court allowed the creation of an “Administrative Convenience Class” for creditors who have funds worth less than $5,000.
- The magistrates also approved the exchange’s request for a three-week extension of creditor protection:
“The Singapore Court has granted the request by the Zipmex Group for the moratoria in HC/OAs 381 to 385 of 2022 to be extended until April 23, 2023, or further order of Court.”
- The green light seems like a breath of fresh air for the troubled platform, whose $100 million rescue plan was close to failing due to a missed $1.25 million payment.
- Zipmex encountered severe difficulties during the crypto winter, which intensified last summer. It paused user withdrawals and revealed a $53 million exposure to Babel Finance and Celsius Network.
- The firm was willing to meet with the Securities Exchange Commission in Thailand to discuss an eventual recovery strategy and possible multi-million fundraising.
- Despite the efforts, it filed for bankruptcy protection in Singapore, becoming another victim of the bear market.
- The exchange allowed its Z Wallet customers to partially withdraw a chunk of their bitcoin and ether holdings between August 11 and August 16 last year.
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