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 in reference to the orders made by the Singapore courts as follows;
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 to propose and explore restructuring options.
- A restraint on creditors from taking legal actions or making claims against our Group during such period.
- Applies to any person in Singapore and foreign based creditors.
- The court may 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 follows:
Re-opening up our Wallets
Since pausing withdrawals on 20th July, 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 exchange in other markets such as Indonesia soon.
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.
Opening up Investment Opportunities
One of the key initiatives is to fundraise, to do what is best for our customers and creditors. 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.
Continuous Engagement with all our 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’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 is a Scheme of Arrangement and the high level proposed restructuring plan
The intended outcome of a Scheme is to restructure Zipmex’s existing debts so that the outcome provides a better return to all creditors.
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 seeking creditor support for the restructuring plan.
For further enquiries, reach out to Customer Support on Live Chat – we’re ready to help 24/7.
Email: [email protected]
LINE Official: @zipmex
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