Zipmex Investor Reneges, Seeks to Slash Buyout to Creditors
• Zipmex’s investor is proposing a new deal which would see them pay the crypto exchange’s creditors far less than initially promised.
• The distressed company is seeking to extend its creditor protection and trying to attract new investors.
• V Ventures had signed a buyout deal with Zipmex back in December 2022, offering $100 million in cash and crypto tokens for 90% of the troubled exchange.
Zipmex Investor Reneges on 100% Payment
The investor of Zipmex, an Asian crypto exchange, is now asking to pay a fraction of its debt instead of the previously promised full payment to creditors. The proposal was made via a letter sent to the court responsible for restructuring the firm.
Proposal Seeks Creditors’ Payment Reduction
The investor has proposed reducing Zipmex’s payment to creditors from 100% down to 10-20%. According to Bloomberg, sources have revealed that the unnamed entity behind this request is venture capital fund V Ventures.
Buyout Proposal Signed in December 2022
V Ventures had signed a buyout deal with Zipmex back in December 2022, offering $100 million in cash and crypto tokens for 90% of the troubled exchange. This money was supposed to be used towards unlocking customers’ frozen wallets by April 2023.
Creditor Protection Extended as New Investors Sought
Zipmex is now looking into further extending its creditor protection while trying to attract new investors as part of their rescue plan. This could face some challenges due to their current situation however as they are unable to meet the conditions stated in their original buyout proposal agreement with V Ventures.
The future remains uncertain for Zipmex as it tries to navigate this difficult period while dealing with renegotiations on its existing investor agreements and attempts at finding more investors willing enough to commit despite these issues.