The acquisition of Zipmex, a struggling cryptocurrency exchange based in Thailand, has hit another roadblock. V Ventures, the buyer, has proposed a significant discount on the purchase price, which could lower the repayment to Zipmex’s creditors by up to 90%.
According to Bloomberg, V Ventures has submitted a revised buyout proposal, under which the exchange’s creditors would receive only 10 to 20 cents on the dollar for their outstanding debt. The details of the new plan were revealed in a letter sent by Zipmex to a Singapore court, which Bloomberg obtained a copy of.
Although the letter did not name V Ventures as the source of the revised buyout plan, a person with direct knowledge of the matter confirmed that the unidentified investor mentioned in the letter was indeed V Ventures. The subsidiary of Thoresen Thai Agencies Pcl had agreed to pay $100 million for Zipmex and promised to repay the exchange’s creditors in full.
However, experts believe that the deal is now at risk of falling apart. This is not the first obstacle that has arisen in Zipmex’s buyout plan. Last month, V Ventures failed to make a $1.25 million payment to Zipmex, which was needed for the exchange’s working capital. The delay put the company’s technology unit up for sale.
The latest hurdle comes just two weeks after the Singapore High Court approved Zipmex’s restructuring plan, which allowed the exchange to remain under creditor protection until April 23, 2023. The approval also paved the way for an administrative class of creditors, bringing customers one step closer to receiving their funds.
It remains to be seen what the outcome of the proposed discount will be and how it will affect Zipmex’s future. The cryptocurrency exchange has struggled to stay afloat in recent years, and this latest setback may prove to be the final nail in the coffin.
In the meantime, the cryptocurrency market continues to fluctuate, with Bitcoin hitting record highs and other cryptocurrencies gaining momentum. As the industry evolves, it is likely that we will see more mergers and acquisitions in the cryptocurrency space, with struggling exchanges being acquired by larger players in an effort to consolidate the market.
Overall, the Zipmex buyout saga serves as a reminder of the risks involved in investing in cryptocurrencies and the volatility of the market. While there is potential for significant returns, there is also the possibility of significant losses. It is crucial for investors to conduct thorough research and exercise caution when investing in this space.
