Summary of Town Hall from 14 September 2022
September 15, 2022
Let us summarize the key points from 14 September 2022 Town Hall for you.
About the moratorium and how it affects the 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 the moratorium on creditors:
- The moratorium provides a breathing space for Zipmex to propose a restructuring plan.
- The moratorium places a restraint on creditors from taking legal actions or making claims.
- The moratorium applies to any person in Singapore and foreign based creditors.
- The Court can extend the moratorium period.
However, we wish to note that ongoing support for the moratorium from the creditors is needed so that the Zipmex restructuring can be successful.
Key updates from Zipmex and how we got here
We have taken 5 major steps to achieve our objectives. The steps are as follows;
Reopening 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 have been continuously working to enable more assets for the users, and to partially reopen the exchange in other markets, such as Indonesia, soon.
Continuous engagement with all regulatory bodies in all operating countries;
Zipmex has always maintained open communication with all regulatory bodies in all of its operating entities; Monetary Authority of Singapore (MAS), Indonesia’s Commodity Futures Trading Regulatory Agency (Bappebti), and Thailand’s Securities and Exchange Commission (SEC).
Opening up investment opportunities;
One of the key initiatives is to fundraise in order for us to do what is best for our customers and creditors, and we have made very good progress here. In the short time that has passed, we have 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 the second phase of due diligence. We are tracking all three in parallel and will soon make a final decision on which investor party is confirmed.
Continuous engagement with all customers;
On the customer side, we continue to be as transparent as possible with ongoing updates across most channels including social media, email, and announcements on our 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.
Appointment of Financial and Legal Advisors.
Lastly, we have appointed advisors in each of our markets:.
- 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 so that the outcome provides a better return to all creditors, in comparison to a liquidation scenario.
The typical Scheme of Arrangement process is outlined as follows:
- Company applies to the Court to get moratorium protection
- Company prepares and then puts forward a restructuring plan which is called the scheme document
- The Court will approve for the company to convene the creditors’ meetings.
- 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.
- 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.
- Thereafter, the Scheme Managers will work with the company to implement the restructuring plan.
The Zipmex Group is still at step 2 of this typical process so there is still a way to go. However, 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 seek for creditor support for the restructuring plan.
Note: Zipmex Indonesia is currently suspending Trade and Deposit function on its platform
For further enquiries, please reach out to Customer Support on Live Chat – we’re ready to help 24/7.
Email: [email protected]
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*Investing in digital assets carries a high level of risk, including the risk of losing all of the invested amount. Investors should refer to the offering information prior to investing as well as invest appropriately with acceptable risk levels. For more information visit https://zipmex.com/id/