Summary of Town Hall from 14 September 2022

September 15, 2022

Zipmex would like to summarize key points from the Town Hall on 14 September 2022 as following;

What the moratorium is and its effects on creditors

On 15 August 2022, the Court extended the moratorium until 2 December 2022 for all five of the Zipmex Group entities.

There are a number of effects of a moratorium on creditors:

  • Provides breathing space for Zipmex to propose a restructuring plan.
  • A restraint on creditors from taking legal actions or making claims.
  • Applies to any person in Singapore and foreign based creditors.
  • Court can extend the moratorium period.

We wish to make note that ongoing creditor support for the moratorium is needed so that the Zipmex restructuring can be a success.

How we got here and key updates from Zipmex 

We have taken 5 major steps to achieve our objective as following;

1. Re-opening up our Wallets;

Since pausing withdrawals on July 20th, we’ve made ongoing progress to bring back access and features to our users and their funds. Zipmex began the release of several coins to customers’ Z Wallet, including SOL, XRP, ADA, ETH, BTC, ZMT and LTC.  

We are continually working to enable more for the users, and are working to partially reopen the exchangesoon. 

2. Continuous Engagement with all Regulatory bodies in every operating country;

Zipmex has always maintained open communication with all regulatory bodies in all its operating entities; Singapore MAS, Indonesian Bappebti, and Thailand SEC.

3. Opening up Investment Opportunities;

One of the key initiatives is to fundraise, to do what is best for our customers and creditors. And we’ve made very good progress here. In the short time that has passed, we received committed interest from four investment parties, in the form of either an MOU (Memorandum of Understanding ), NBO (Non-Binding Offer) or a Non-binding Term Sheet. 

We are now finalising key deal terms with three parties, and doing phase II due diligence. We are tracking all three in parallel and will make a final decision on which investor party is confirmed soon. 

4. Continuous Engagement with all our Customers; 

We continue to be as transparent as possible with ongoing updates and announcements across channels including social media, email, and website, as well as doing regular livestreams to give users the most updated information when possible. We also have 24/7 Customer Service via Live Chat and Email.

5. Appointment of Financial and Legal Advisors.

Lastly, we’ve appointed advisors in each of our markets to be the experts in what they do. 

  • Singapore Legal Advisor: Morgan Lewis Stamford LLC;
  • Thailand Legal Advisor: Kudun & Partners;
  • Indonesia Legal Advisor: Hiswara Bunjamin & Tandjung; and 
  • Financial Advisor: KordaMentha. 

What a Scheme of Arrangement is and the high level proposed restructuring plan; 

The intended outcome of a Scheme is to restructure the company’s existing debts which provides a better return to all creditors, in comparison to a liquidation scenario.

The typical Scheme of Arrangement process is outlined as follows:

  1. Company applies to the Court to get moratorium protection.
  2. Company prepares and then puts forward a restructuring plan which is called the scheme document.
  3. The Court will approve for the company to convene the creditors’ meetings.
  4. The Scheme Managers will issue notices to creditors, creditors then file their claims and the Scheme Managers will adjudicate on the claims received. The Scheme Managers will then hold the Creditors’ Meeting for voting on the restructuring plan.
  5. Once the creditors approve the restructuring plan, the company will obtain sanction from the Court – this step is required for the restructuring plan to be effective.
  6. Thereafter, the Scheme Managers will work with the company to implement the restructuring plan.

The Zipmex Group is at step 2 of this typical process and there is still a way to go. We will endeavour to provide further updates as the restructuring process continues.

In terms of the next steps of the restructuring process, once we get to a position on the potential investment, the Zipmex team will work with the legal and financial advisors to formulate a restructuring plan with a view to then seeking creditor support for the restructuring plan.

View FAQs  https://zipmex.com/support/moratorium  

For further enquiries, reach out to Customer Support on Live Chat – we’re ready to help 24/7.

Email: [email protected]
Facebook: Zipmex Asia

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For more information visit https://zipmex.com

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RISK WARNING ON DIGITAL PAYMENT TOKEN SERVICES

The Monetary Authority of Singapore ("MAS") requires us to provide this risk warning to you as a customer of Zipmex.

Before you pay Zipmex any money or DPT, you must be aware of the following.

  1. Zipmex is not currently licensed by MAS to provide DPT services. This means that you will not be able to recover all the money or DPTs you paid to Zipmex if Zipmex’s business fails.
  2. You should not transact in the DPT if you are not familiar with this DPT. This includes how the DPT is created, and how the DPT you intend to transact is transferred or held by Zipmex.
  3. You should be aware that the value of DPTs may fluctuate greatly. You should buy DPTs only if you are prepared to accept the risk of losing all of the money you put into such tokens.
  4. You should be aware that Zipmex may offer services related to DPTs which are promoted as having a stable value, commonly known as “stablecoin”.
  5. DPT held in your Hosted Wallet is not subject to the Singapore Deposit Insurance Scheme (“SDIC”) or any similar insurance or guaranty scheme of any other jurisdiction. In addition, funds stored in your Fiat Wallet do not benefit from the SDIC or any similar insurance or guaranty scheme of any other jurisdiction.

ZipUp+ products have not been approved by the Monetary Authority of Singapore (“MAS”) under the Payment Services Act 2019 and MAS has not reviewed or approved any features of these product offerings. Please review this link for the full terms and conditions and risk disclosure.