• Zipmex’s investor is now proposing a new deal that would see them pay the crypto exchange’s creditors far less than what was initially pledged.
• The distressed company is planning to extend its creditor protection further and seek out new investors.
• An anonymous source revealed that the investor behind the proposal is venture capital fund V Ventures.
Zipmex Investor Reneges on 100% Payment
Zipmex’s investor is now proposing a new deal that would see them pay the crypto exchange’s creditors far less than what was initially pledged. According to a letter written to the court in charge of its restructuring, Zipmex’s investor is asking to pay only 10 to 20 percent of what is owed to creditors.
V Ventures Identified as Investor
An anonymous source revealed that the investor behind this new proposal is venture capital fund V Ventures. It had signed a deal with Zipmex in December 2022, where it agreed to acquire 90% of the troubled crypto exchange for $100 million in cash and crypto tokens. A portion of this payment was meant to be used to gradually unlock customers’ frozen wallets by April 2023.
Creditor Protection Extended Further
The distressed company has also decided to further extend its creditor protection as it seeks out new investors. This will help protect Zipmex from being put into bankruptcy proceedings while they look for ways of raising funds and settling their debts with creditors through a buyout plan or other means.
Reasons Behind Proposal
Zipmex’s investor did not meet the conditions agreed upon in the initial buyout proposal, which could explain why they are now proposing this drastic measure of slashing payments made towards creditors.
Conclusion
This situation illustrates how difficult it can be for companies facing financial distress and struggling with debt payments, even when an external investor has stepped in with a potential solution such as V Ventures’ buyout plan for Zipmex. Regardless, Zipmex will continue trying different means of raising funds and repaying its debts via buyouts or other options before deciding on any particular course of action moving forward.