Zipmex investor forgoes 100 percent payment and is now trying to cut the buyout deal

Zipmex investor forgoes 100 percent payment and is now trying to cut the buyout deal

Zipmex's rescue plan may face some challenges as the crypto exchange investor is now demanding payment of a fraction of its debts, as opposed to pledging to make a 100 percent payment.

The ailing company is now planning to further expand its creditor protection in order to find new investors.

Zipmex takeover proposal takes a new turn

Zipmex's investor is proposing to pay the Thai crypto exchange's creditors about 10 to 20 percent of the amount owed to them, according to a letter the firm wrote to the court overseeing its restructuring. The investor's new proposal is significantly different from the original buyout proposal, which promised full payment to creditors.

The letter, seen by Bloomberg, said the investor wanted to reduce payments to creditors because Zipmex had not met the conditions set out in the original takeover proposal. Although the investor's name is not mentioned, an anonymous source revealed that the unnamed company was venture capital fund V Ventures.

As already reported byCryptoPotato, V Ventures signed a deal with Zipmex in December 2022 to acquire 90% of the struggling crypto exchange for $100 million in cash and crypto tokens. The crypto portion of the payment should be used to gradually unlock customers' frozen wallets by April 2023.

However, Zipmex did not receive the fourth tranche of the $1.25 million payment due on March 23, 2023 from its investor. The payment should be used to finance working capital.

In July 2022, Zipmex, which has offices in Thailand, Singapore, Indonesia and Australia, halted withdrawals on its platform after suspending $53 million from troubled crypto lenders Celsius and Babel Finance. Shortly thereafter, Zipmex filed for bankruptcy protection from creditors and was granted three months of creditor protection by the Singapore High Court in August 2022, allowing it to offer a debt restructuring plan.

Zipmex plans to further extend the creditor protection window

Meanwhile, Zipmex's latest extension of creditor protection expires in a few days on April 23rd. With the latest development of its investor, the crypto exchange wants to ask the court to grant a further creditor extension in order to be able to look for alternative investors, as stated in the letter.

Amid Zipmex's troubles, the Thai Securities and Exchange Commission (SEC) reportedly opened an investigation into the firm's activities, examining whether the crypto exchange had violated local laws.

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