Troubled crypto trading platform Zipmex has submitted an application to the Singapore court, which oversees its restructuring, to extend its moratorium deadline by another two months, as its investor is looking to alter buyout terms.
Recently granted a moratorium extension in early March for another three weeks until April 23, the fate of Zipmex’s Asian unit and its creditors now hangs upon a court hearing, which is scheduled for Friday morning via Zoom conference, according to a company statement on Tuesday.
While the firm did not name V Ventures, the venture capital arm of Bangkok-listed Thoresen Thai Agencies, as the investor, Zipmex has confirmed previous media reports about the delay in tranche payments by its investor in a separate announcement the same day.
Claiming that Zipmex had failed to meet the initial agreement, its investor had requested Zipmex Asia to adjust the amount of capital, which was supposed to throw a lifeline to the firm. “As of today, the investor claims that the scheme of arrangement has lapsed and that it is no longer bound to abide by the terms of the scheme of arrangement,” Zipmex said in a statement.
“The investor has also demanded a return on its working capital loan,” it added.
DealStreetAsia has reached out to Zipmex for a comment.
Last week, Zipmex’s investor was reportedly seeking an approval from the Singapore court to make a 10-20% repayment of the total debt to its creditors instead of paying them back in full as formerly agreed upon, according to Bloomberg.
Earlier this month, The Business Times reported that Akalarp Yimwilai, CEO of the firm’s Thailand operations, had informed its local staff that the firm was unable to make a full payroll in March as it had not received the fourth tranche.
Several sources have confirmed to DealStreetAsia that Zipmex had laid off many of its employees in Thailand. DealStreetAsia previously reported that Zipmex’s chief marketing officer Proud Limpongpan had been reaching out to management officers of other companies to help its employees get new jobs.
Zipmex was ensnared in the liquidity crisis of virtual coin lenders Babel Finance and Celsius last year. Since then, one of its platforms, Z Wallet, remains frozen and its customers are unable to make any deposit.
“The company plans to use this period to find a solution, to the best of its ability, for the reopening of Z Wallet,” Zipmex said.
Zipmex recorded losses of S$23.75 million ($17.77 million) during the financial year ended December 31, 2021, up by 400% over the previous year.
Zipmex operates in Singapore, Thailand, Indonesia, and Australia.