Zipmex Restructuring Plan: Offers to Pay Creditors 3.35 Cents on the Dollar

Zipmex Restructuring Plan: Offers to Pay Creditors 3.35 Cents on the Dollar

By: Eva Baxter

Plagued by financial issues, the Thai cryptocurrency exchange Zipmex has proposed a plan to pay its creditors 3.35 cents for every dollar of initial claims, with possibilities of higher payments based on recovery conditions. The company, which currently owes $97 million to its customers, is hopeful that this restructuring offer will be approved by the stakeholders.

It is also reported that the company could potentially increase the repayment rate to 29.35 cents on the dollar, depending on the recovery. However, major creditors have expressed concerns and requested an independent review of the company's liabilities. Zipmex CEO Marcus Lim declined to confirm these details and suggested inaccuracies with the reported figures.

Prior to this, the crypto exchange ran into trouble last summer when it filed for bankruptcy protection in Singapore, citing its $53 million exposure to crypto lenders Babel Finance and Celsius. Despite continuous requests for a moratorium on its debt, Zipmex has been met with fierce opposition from creditors. A final decision is expected after a vote scheduled for early December.

Adding to the exchange's troubles, all digital asset trading in Thailand has been suspended, effective from January 31, 2024, and is currently under investigation by Thailand's Securities and Exchange Commission.

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