Zipmex seeks extension for bankruptcy protection in Singapore #togrp7
The application comes barely one week after the exchange halted withdrawals from its platform due to a liquidity crunch. Zipmex’s solicitor Morgan Lewis Stanford has requested a court order that prevents creditors from suing the company for six months.
According to Zipmex, the moratorium will enable the team to focus all of its efforts on resolving the liquidity issues affecting its operations. Under Singapore law, a company facing a liquidity crisis can file for a moratorium which automatically gives it 30-day protection against legal proceedings from creditors. This is to enable the company to explore options of settling its creditors or filing for an extension of the moratorium. If the company needs more time, the presiding court will schedule a hearing with concerned creditors to decide on extending the moratorium or not.