The Thai fund buying struggling crypto exchange Zipmex is seeking to impose a steep haircut on its creditors under a revised buyout proposal.
The investor is proposing to pay creditors just 10% to 20% of the amount they are owed, having previously pledged to fully repay them, according to a letter from Zipmex to the Singapore court overseeing its restructuring which was seen by Bloomberg News. The letter doesn’t identify the investor.
V Ventures, a subsidiary of Thoresen Thai Agencies Pcl, offered to buy Zipmex for about US$100 million ($133.0 million), Bloomberg News reported in December. But the deal started fraying late last month, when Zipmex said it hadn’t received the most recent payment due under the proposed deal.
A person with direct knowledge of the matter said V Ventures is the unidentified investor referred to in the letter. Zipmex and V Ventures didn’t immediately respond to requests for comment.
Zipmex, which fell victim to last year’s bear market in virtual coins, plans to ask the court to extend its creditor protection period in Singapore to give it time to seek alternative investors, according to the letter. The buyer told Zipmex that it wanted a steeper haircut for creditors because some conditions attached to the original deal hadn’t been met, the letter said.
The company’s current period of Singapore creditor protection runs until April 23. Zipmex operates in Singapore, Thailand, Indonesia and Australia.
