In a significant development, Zipmex's rescue investor is now trying to offer just 10 to 20 cents on the dollar to the creditors of the troubled exchange. This proposition is a considerable drop from the original plan of 100% payment that was offered. Zipmex's lawyers, Morgan Lewis Stamford, submitted a letter to the Supreme Court of Singapore regarding this matter. Earlier, V Ventures had agreed to a $100 million deal with the company, however it failed to make the fourth tranche payment worth $1.25 million which consequently left Zipmex without enough funds to pay its employees, putting the company at risk of liquidation.

The exchange's trouble started last July when it couldn't provide transactions for customers due to its exposures to Babel Finance and Celsius, two major crypto lenders. With estimated entire exposure to Babel and Celsius of $53 million, Zipmex is running out of time to look for a solution. It can use the protection from its creditors until April 23, 2021, and they plan to apply for an extension.

Zipmex has already identified two potential investors in Thailand who could provide financial aid and thus, save the company from liquidation. Zipmex, however, didn't elaborate on details regarding the investors and their approach.

It's clear that Zipmex is looking for a way to remain alive in this difficult time and the chance of their survival depends on the performance of the offers of the new investors. While the situation is unclear and filled with uncertainties, it is imperative for Zipmex to pay attention to the details and try to come up with a safe solution.



Other News from Today