Zipmex Gets a 3-Month Creditor Protection
A Singapore-based venue providing crypto services, Zipmex, has acquired approval from the native high court to have protection from the creditors with a 3-month moratorium. With this, no legal operations will be taken by the creditors against it during the specified time.
Zipmex’s Filing for a Moratorium Approved by a Singaporean Court
5 organizations under the possession of the company will be under the respective protection. It will make it possible for the exchange to do its best to restructure the business plan thereof and keep on serving its clients. A statement was issued this morning, in which Zipmex disclosed that 2nd December will be the date till which the platform will be under protection. An obligation implemented by the court is that the company’s financial condition and restructuring endeavors should be reported by it to the court on a periodical basis.
Apart from that, the court has ordered the firm to conduct a “town-hall-style meeting” in the next 30 days to elaborate on the significance of these events for the creditors as well as the investors. Regular updates will be given to the customers and creditors regarding the restructuring progress per month. In addition, the court transcripts’ extended copies will also be delivered to the creditors through protected links on Dropbox, as the press release noted.
Zipmex Shareholders Demand CEO’s Resignation
The approval for the moratorium application of Zipmex is witnessed 18 days following its earliest declaration to go for creditor protection as included in its endeavors to overcome the liquidity crisis. As included in the restructuring initiatives of the venue, it has conversed with several parties potentially interested in supporting the distressed exchange following the majority of the well-known consumers ducked on the loans.
Reports say that up till now a couple of memorandums of understanding (MOUs) have been signed by the firm leading toward exclusive funds’ incorporation into the platform. Nonetheless, the formal procedures are still be followed by the parties in advance of moving ahead with the investments. As per Bangkok Post’s cited sources, Zipmex’s shareholders want that the CEO of the firm “Marcus Lim” should step down from his position because of several measures that he took to lead the venue to its present condition.
On 1st August, Zipmex published a statement while endeavoring to justify the events of withdrawal blockage in July. Furthermore, the platform revealed in its press release to have had dealings with Celsius Network (crypto lending firm) and was influenced by its withdrawal blockage.
Crypto exchanges are facing hard times lately as two exchanges went down last week. These exchanges included NURI and Hotbit.
