Update on Moratorium Proceedings

July 29, 2022

Dear Zipsters,

Update on Moratorium Applications in Singapore

We refer to our announcement on 27 July 2022. 

We would like to update that our solicitors in Singapore, Morgan Lewis Stamford LLC, had attended the case conference of the Moratorium Applications before the Singapore Court earlier this afternoon. 

The Singapore Court has directed as follows (all timings in Singapore time):

  • The Zipmex entities (the “Companies”) are to file an affidavit by 4 pm on 1 August 2022 setting out the efforts made to bring the Moratorium Applications to the notice of the Companies’ broader creditor base;
  • Any interested party (including creditors) in the Moratorium Applications are entitled to file an affidavit by 4 pm on 5 August 2022 if they wish to object to or have any views on the Moratorium Applications;
  • The Companies are given leave to file response affidavit(s) by 10 am on 10 August 2022;
  • Written submissions and bundles of authorities are to be filed and tendered to the Singapore Court by noon on 12 August 2022.
    • The Companies are given leave to file two sets of joint written submissions. The first set of joint written submissions shall deal with the substantive matter of the Moratorium Applications, and shall be limited to 40 pages (excluding the cover page).
    • The second set of joint written submissions shall deal with the issue of whether the applicants in HC/OAs 381, 384 and 385 have established a “sufficient connection” to Singapore, and shall be limited to 20 pages (excluding the cover page).
    • The Companies shall also identify all pending proceedings against them, whether inside or outside of Singapore.
    • Creditors are also given leave to file one set of written submissions by this date, with their submissions limited to 30 pages (excluding the cover page).
  • The Moratorium Applications have been fixed for hearing at 10 am on 15 August 2022 before the Honourable Justice Aedit Abdullah.

For good order, the Companies’ solicitors have also been directed to, by noon on 12 August 2022, provide the Singapore Court with the following:

  • A list of all counsel and any legally unrepresented persons intending to attend the hearing. Where any unrepresented person is representing a corporate entity, they require letters of authorisation to attend the hearing.
  • A list of all creditors of the Companies, and whether they are supporting or objecting to the Moratorium Applications.
  • A time-bank, on the basis that the hearing will not take longer than 2 hours on 15 August 2022.

We have been directed to make copies of the originating applications and the affidavits filed in support of the same available to verified creditors. These can be downloaded from the Dropbox link at https://www.dropbox.com/s/gbnbjavfqqn066r/29072022%20v2.zip?dl=0. All further documents filed in the proceedings will be made available to verified creditors through newly generated Dropbox links. In the interests of ensuring that only affected parties have access to these documents, they have been password protected and you will be required to send an email to [email protected] for a verification check before you will be provided with the password to access the documents.

Creditors may also appoint counsel to represent them in Singapore ahead of the Moratorium Applications. If you are a creditor and have appointed counsel to represent your interests, please inform our solicitors of the same and they will liaise with your appointed counsel moving forward.

Finally, we would take the opportunity to address several media reports. We have discovered that several media outlets and independent reporting have characterised the Moratorium applications as proceedings to put the Companies into liquidation or bankruptcy. 

This is inaccurate. The Zipmex Companies have filed applications for moratoria under Section 64 of Singapore’s Insolvency, Restructuring and Dissolution Act 2018. The moratoria allow the Zipmex Companies breathing space to restructure their debts. The Singapore moratoria will prevent creditors and third parties from commencing actions against the Zipmex Companies (including liquidation proceedings) while they are active, allowing the Zipmex Companies to shift their focus on acquiring investments and liquidity to tide it through its liquidity situation.

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].

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Zipmex Company Limited ("Company") operates a digital assets brokerage business. In order to increase the liquidity for digital assets trading on the Company's exchange platform, the Company sends and receives trade orders from one third-party exchange which is Zipmex SG, our affiliated company located in Singapore. No fees or compensation is provided between the parties. Any references to Zipmex SG is a reference to Zipmex Pte. Ltd.