Thai crypto exchange Zipmex seeks two month creditor protection extension
- Thai crypto exchange Zipmex filed an application with the Singapore court seeking a 2-month extension of its moratorium period.
- Zipmex’s bailout investor is reportedly demanding back the loan it extended to finance the struggling exchange’s operations.
A request for a moratorium extension has become the latest development in the bankruptcy proceedings of Thailand-based Zipmex.
The crypto exchange filed for bankruptcy protection last year following liquidity issues induced by the collapse of Terra. It is now seeking a two-month extension on the creditor protection that was granted by a Singapore court in August 2022.
Bailout investor demands capital back
According to a recent update from Zipmex, the investor who agreed to bail out the crypto exchange, claimed that the Scheme of Arrangement that was approved by the court had lapsed.
The investor also claimed that it was no longer legally bound to abide by the terms of the court-approved arrangement. In a further blow to the struggling crypto exchange, the investor demanded it to return a loan that was extended to finance working capital expenditures.
The update added that:
“The Company is now discussing with the investor to find the best available solution suitable for all parties. The Company is aware of the impact that the Investor’s new position will have on the reopening schedule for Z Wallet.”
The unnamed investor is most likely V Ventures, a subsidiary of Thoresen Thai Agencies Pcl. The company had previously agreed to acquire Zipmex for $100 million. Zipmex stated in its update that it was currently negotiating with new investors to maximize returns for its customers.
However, the crypto exchange is anticipating a delay in returning funds to creditors due to the negotiations with new investors. And hence, it filed an application in the Singapore court requesting a two-month extension on the moratorium. The firm will use the extended creditor protection period to find a solution to reopen withdrawals through its Z Wallet.
This is not the first time that Zipmex has run into trouble with its investors. Last week, V Ventures reportedly proposed a 90% cut in the amount for the exchange’s stranded customers. The buyer also missed a $1.25 million payment required to pay wages last month to Zipmex.