Zipmex Files Moratoria for All Its Entities to Buy Time for Debt Restructuringby Fintech News Singapore August 1, 2022
Singapore-based cryptocurrency exchange Zipmex announced that it has filed for for moratoria for all its entities under Section 64 of Singapore’s Insolvency, Restructuring and Dissolution Act 2018 to buy some time to restructure its debts.
The entities that have sought the moratorium relief in the applications are Zipmex Asia Pte Ltd, Zipmex Pte Ltd, Zipmex Company Limited (incorporated in Thailand), PT Zipmex Exchange Indonesia (incorporated in Indonesia), Zipmex Australia Pty Ltd (incorporated in Australia).
The firm said that this move helps protect Zipmex against third-party actions, claims, and proceedings while it is active, and enables its team to focus all its efforts on resolving the liquidity situation, without having to worry about defending potential claims or adverse actions while doing so.
In a recent update, the company stressed that the moratorium was not a liquidation of any of its companies.
Zipmex sought to clarify its position as it found that several media outlets have characterised the moratorium applications as proceedings to put the companies into liquidation or bankruptcy.
“The moratoriums would give the Zipmex Group the breathing space and time it requires to explore options to resolve the liquidity situation (including to pursue the recovery against Babel Finance), and to formulate a restructuring plan and secure additional investment to secure the Zipmex Group’s operations moving forward.
We should add that at the time of this statement, there has been formal registered interest from various parties and we have also received committed expressions of interest from several potential investors, and are in advanced stages of negotiations with them on the structure and terms of their potential investments.”
Zipmex will continue to operate the Trade Wallet, NFT platform, and other products as normal, and there is no planned interruption to service.