by • Zipmex’s restructuring plan was recently greenlighted by the Singapore High Court.
• The court approved the creation of an “Administrative Convenience Class” for creditors with deposits worth less than $5,000.
• It also gave a three-week extension for creditor protection, which will last until April 23rd.
Zipmex’s Restructuring Plan Approved
The Singapore High Court recently gave its approval to Zipmex’s pre-packaged plan to restructure some of its operations and enable customers to receive portions of their deposits back. The Thai-based crypto exchange suspended client withdrawals in July 2020 due to volatile market conditions and subsequently filed for bankruptcy protection.
Administrative Convenience Class
The court allowed the establishment of an “Administrative Convenience Class” which will enable users with deposits worth less than $5,000 to receive a portion of their funds back. Additionally, they granted the exchange’s request for a three-week extension of creditor protection, lasting until April 23rd.
Previous Struggles
Zipmex encountered severe difficulties during last year’s crypto winter, eventually leading to them pausing user withdrawals and revealing a $53 million exposure to Babel Finance and Celsius Network. In addition, their $100 million rescue plan was close to failing due to a missed $1.25 million payment.
Recent Developments
Thanks to the recent green light from the Singapore High Court, Zipmex is now able to pursue its restructuring process and provide assistance for creditors with deposits less than $5k in value. The exchange has also been given a three week extension on creditor protection and is now looking forward into 2021 with renewed optimism about its future prospects.
Conclusion
Although Zipmex has encountered numerous difficulties over the past year, it appears that they have finally been given some breathing room thanks to the Singapore High Court granting them permission to set up an “Administrative Convenience Class”. This should help many customers who have funds in limbo get at least part of them back while giving Zipmex more time before they potentially face liquidation proceedings next month.
