Coin Edition -
- Zipmex’s buyout has hit another snag as its buyer, V Ventures, proposes a 90% discount.
- The buyer wants to pay the Thai crypto exchange’s creditors just 10 to 20 cents on the dollar.
- V Ventures had previously offered to buy $100 million to buy Zipmex and pay its creditors in full.
The buyout deal of Thailand-based Zipmex has hit yet another hurdle after its buyer, V Ventures, made a proposal seeking a hefty discount on the purchase price of the struggling crypto exchange. The discount would decrease the repayment to Zipmex’s creditors by as much as 90%.
According to a report by Bloomberg, Zipmex’s buyer has put forward a revised buyout proposal as per which the Thai crypto exchange’s creditors would be paid just 10 to 20 cents on the dollar for the amount that they are owed. The details of the new plan were derived from a letter sent to a Singapore court by Zipex, a copy of which was viewed by Bloomberg.
While the letter doesn’t specifically name V Ventures behind the revised buyout plan, a person with direct knowledge of the matter confirmed that the unidentified investor cited in the letter was in fact V Ventures. A subsidiary of Thoresen Thai Agencies Pcl, V Ventures had agreed to pay $100 million to acquire the struggling Zipmex. The deal also provided for the struggling exchange’s creditors to be paid in full.
People familiar with the matter believe that the deal is now at risk of being quashed. This is not the first hurdle that occurred in Zipmex’s buyout plan. Last month, V Ventures missed a $1.25 million payment to Zipmex. The funds were required for the exchange’s working capital and its delay put the firm’s technology unit in consideration for sale.
The latest hurdle comes just two weeks after the Singapore High Court approved Zipmex’s restructuring plan, allowing the exchange to stay under creditor protection till April 23, 2023. The approval also paved the way for an administrative class of creditors, bringing the customers one step closer to receiving their funds.
The post New Hurdle In Zipmex’s Buyout As Buyer Proposes 90% Discount appeared first on Coin Edition.