FAQ for Financial Proceedings of the Zipmex Group of Companies
|1||How will this allowance of 3 months assist us?||Zipmex Asia and Zipmex Pte. Ltd. and their scheme managers require time to adjudicate the debt, hold a meeting of their creditors, and allow for creditors to vote both electronically and through written means. This is anticipated to take up to three months. The recovery through this process is expected to be higher than if the companies were wound up in the near future. |
The three-month extension that the Zipmex companies are seeking is intended to extend the Court protection for the two companies so that no creditors can commence adverse proceedings against the companies during this period, without the Court’s permission.
|2||How would any proceeds be returned back to the creditor? |
Would it be via the Zipmex exchange platform or would a fiat dollar amount be sent via cheque/bank transfer?
|The initial return is targeted to be in USDC for customers of the Zipmex group. This is expected to be within 120 days of the approval of the scheme of arrangement. |
A second return may materialise in 2 to 3 years’ time. This is projected to be in cash instead of cryptocurrency.
The initial return may not be via the Zipmex exchange platform. This is because once Zipmex Thailand is sold to a purchaser, the Zipmex group may no longer have operational control over such disbursements. Instead, customers of the companies will be prompted to indicate a wallet address for the return of the USDC.
|3||Why does Zipmex need an extension? Are there any plans in the pipeline to get investment? |
How are the proceedings in the USA to get back our money?
|The extension is required because the Zipmex companies require time to ensure that the Singapore law formalities of the scheme of arrangement process are complied with. |
The investment into the group is the full divestment by Zipmex Asia of the Zipmex Thailand and Zipmex Indonesia operating subsidiaries. The only proceedings in the USA are Zipmex Asia’s participation in the insolvency proceedings of Celsius Network.
The process is ongoing and subject to the administrators of Celsius Network’s estate as well as the bankruptcy court in the USA. Zipmex Asia is exploring the possibility of selling its debt for a better return and the debt presently forms part of the Immediately Realisable Assets class to be liquidated and distributed to creditors.