July 27, 2022
As we continue to work towards resolving our liquidity situation and re-enabling the Z Wallet for all users, we would like to update our users that last Friday, we submitted moratorium applications in Singapore for all Zipmex entities.
This helps protect Zipmex against third party actions, claims, and proceedings while it is active, and enables the team to focus all our efforts on resolving the liquidity situation, without having to worry about defending potential claims or adverse actions while we are doing so. It is important to note that a moratorium is not a liquidation of any company, and there is no significant status change from our last update.
We continue to operate the Trade Wallet, NFT platform, and other products as normal, and there is no planned interruption to service of the same.
Our users are a priority and we are striving to restore all functionality to the platform while being as transparent as possible. We thank you for your patience and your continued support.
Below is more detailed information on the moratorium applications:
On 22 July 2022, our solicitors in Singapore, Morgan Lewis Stamford LLC, filed five applications under Section 64 of Singapore’s Insolvency, Restructuring and Dissolution Act 2018 on behalf of several of the Zipmex Group’s entities. We are seeking global moratoriums to prohibit and restrain the commencement or continuation of proceedings against the companies for a period of up to six months.
The entities that have sought the moratorium relief in the applications are:
- Zipmex Asia Pte Ltd
- Zipmex Pte Ltd
- Zipmex Company Limited (incorporated in Thailand)
- PT Zipmex Exchange Indonesia (incorporated in Indonesia)
- Zipmex Australia Pty Ltd (incorporated in Australia)
In the meantime, under Singapore law, the Companies have been granted an automatic moratorium for a period of either (i) 30 days; or (ii) until the Singapore Court decides the Applications, whichever is earlier. The automatic moratorium provides similar protections to those stated above in Singapore for the Companies.
A case conference has been fixed for the applications on Friday, 29 July 2022, at 4 pm, and it will be conducted as a Zoom webinar. Any creditor(s) who wish to attend the case conference are to inform our solicitors, Morgan Lewis Stamford LLC, before 6 pm on 28 July 2022 (10 am GMT, 28 July 2022). Please note that only creditors are invited to attend and we will be conducting a vetting exercise to ensure that you are in fact a creditor of any of the Companies before you can be registered as an attendee. You can reach Morgan Lewis Stamford LLC through the following email address – [email protected].
Once you have been registered as an attendee for the case conference, a Zoom link and dial-in details will be extended to you.
In addition to the foregoing, please note for the avoidance of doubt that:
- Each registrant is required to log in using a Zoom account one hour before the scheduled hearing of the case conference;
- Attendees will not be allowed to address the court or turn on their cameras until and unless the court approves a request that is typed into the webinar “chat” with a synopsis of what the attendee wishes to address the court about; and
- Watermarking technology will be used and any unauthorised recording or dissemination of video / audio footage of the case conference is prohibited and may be the subject of thorough investigations that can result in civil or criminal liability.
The moratoriums would give the Zipmex Group the breathing space and time it requires to explore options to resolve the liquidity situation (including to pursue the recovery against Babel Finance), and to formulate a restructuring plan and secure additional investment to secure the Zipmex Group’s operations moving forward. We should add that at the time of this statement, there has been formal registered interest from various parties and we have also received committed expressions of interest from several potential investors, and are in advanced stages of negotiations with them on the structure and terms of their potential investments.
We will provide further updates as the applications progress. During which, we will continue to engage in open dialogue with our community, local regulators across all our markets, and all impacted parties.
If you have any queries on the moratorium or would like to express your support for the Zipmex Group’s moratorium and restructuring plans, please feel free to email our solicitors at [email protected].