The beleaguered digital asset exchange Zipmex has filed moratorium applications in Singapore to explore options for resolving the liquidity crisis and developing a restructuring plan, in a stress-free way.
The moratorium application will grant the exchange protection against third-party actions, claims, and proceedings for the time being.
On July 22, Zipmex Group solicitors Morgan Lewis Stamford LLC filed five moratorium applications under Section 64 of Singapore’s Insolvency, Restructuring and Dissolution Act 2018.
The applications have been submitted on behalf of
- Zipmex Asia Pte Ltd
- Zipmex Pte Ltd
- Zipmex Company Limited (incorporated in Thailand)
- PT Zipmex Exchange Indonesia (incorporated in Indonesia)
- Zipmex Australia Pty Ltd (incorporated in Australia)
Under Singapore law, an automatic moratorium is imposed for either 30 days or until the Singapore Court rules on the Applications, whichever is earlier.
According to the blog, a case conference for the applications has been scheduled for Friday, July 29, at 4 p.m., to be held on Zoom and open to any creditor(s) who wish to attend. They must notify Morgan Lewis Stamford LLC of the same by 6 p.m. on July 28 (10 a.m. GMT on July 28, 2022).
Zipmex recently disclosed that it had a $48 million exposure to Babel Finance and Celsius. Zipmex intends to pursue recovery against Babel Finance while also securing additional investment, as it is in the advanced stages of talks with several potential investors.