With the latest development, Zipmex revealed that company has applied for a moratorium in Singapore, which will insulate it from its creditors in the country while it investigates alternative solutions to its problems. According to local media, five applications were lodged last Friday (July 22) on behalf of the firm's various businesses seeking moratoriums on legal procedures for up to six months.
“We submitted moratorium applications in Singapore for all Zipmex entities,” Zipmex said in a statement. “This helps protect Zipmex against third party actions, claims, and proceedings while it is active, and enables the team to focus all of our efforts on resolving the liquidity situation, without having to worry about defending potential claims or adverse actions.” It is vital to emphasize that a moratorium is not a company's liquidation, and there has been no significant status change since our last statement.
According to Singapore law, such a submission automatically grants relief for 30 days or until a Singapore court rules on the claim, whichever comes first.
After a successful purchase deal, American digital currency trading platform Coinbase Global Inc announced plans to invest in Zipmex as early as June of this year.
Blockchain.News previously revealed that Zipmex is in talks with “Interested Parties” about potential bailout possibilities. While this option is available to the company, it is also hopeful that it can recover some of the $48 million owed by Babel Finance through the bankruptcy proceedings.
Because of the unsecured exposure, the Zipmex issue is best defined as unexpected. The company has stated that it would not mind writing off the $5 million claims it has against Celsius Network against its own balance sheet because it expects the procedure to be lengthy and nearly impossible.
Despite the filed moratorium and its continued problems, Zipmex stated that company will “continue to operate the Trade Wallet, NFT platform, and other products as usual, with no scheduled interruption to” these services.
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