WazirXhelditsfirstcreditormeetingonOctober15aspartofitsrestructuringeffortsaftertheJulyhack.OnlyfouroutoftenCommitteeofCreditor(COC)membersattended,raisingconcernsaboutrepresentation.
Duringthemeeting,thecompany,alongsidefinancialadvisorsfromKroll,touchedupontherestructuringprocessandplanstoaddresstheassetshortfallandpotentialprofit-sharing.
WazirXhasnotedtheabsenceof6COCmembers
CryptoexchangeWazirXannouncedthatithadconcludeditsfirstcreditormeetingonOctober15.ThemeetingtouchedupontherestructuringprocessaftertheJulysecuritybreach,butonlyfourcreditorsattended.
WazirXco-founderNischalShettyandthecompany’stopexecutivesattendedthemeetingwiththefinancialadvisorsfromKroll.WhilethenamesoftheCoCmembersareconfidential,all10creditorsareassignedaCCnumberwithinitials.SixoftheselectedCoCmembersweremissingfromthemeetingwhichdiscussedthenextstepsintheCourtprocess.
WazirXrestructuringproposal
Thecompanyformedacommitteeofcreditors(COC)torepresentcreditors’interestsaspartoftheSingaporeCourt-sanctionedmoratorium.10creditorswererandomlyselectedaspartoftheexchangeprocesstobecomepartofthecommittee.WhilebeingpartoftheCoCwasbasedoncreditordiscretion,onceselected,themembersneededtoattendthemeetings.
TheexchangehadpreviouslysaidthatfailuretoremainanactivemembercouldleadtoremovalfromtheCOC.Themeetingconcludedthattheexchangewouldfollowupwiththenon-attendingmembersandreplacethemiftheydonotplantoactivelyparticipate.
Zettaicouldappealtoextendits4-monthmoratorium
Despitetheabsence,themeetingaddressedkeyconcernsfromCOCmembersaboutrepresentingmillionsofcreditorsandmanagingfeedback.Membersappearedconcernedabouttheresponsibilitythatcomeswiththeselection,handlingquestions,andthetightmoratoriumtimeline.Somecreditorssuggestedspeedinguptheprocess,butthecompanyexplainedtheconstraintsofcourtschedules.Inaddition,thecompanyplanstoapplyforanextensionofthemoratoriumperiodbeforeitsexpiry.
Questionswerealsoraisedaboutsettingasidefundsforemergencies,keepingtheexchangepartiallyoperational,andthepotentialrecoveryfromtheassetdeficit.Currently,theexchangehasa45%assetdeficit.Thecompanyalsoclarifiedthatrebalancingisrequiredbeforewithdrawalscanbeinitiated.
Meanwhile,Zettai’srestructuringproposalwilladdresstheassetshortfallbyequitablydistributingthemtothecreditors.Thecompanynotesinitsfinancialadvisorythatitwillallowcreditorstochoosethetypeoftokensfordistributionswhiletheyattempttorecoverstolentokens,pursuepartnershipsforprofit-sharingopportunities,andpotentiallyreopenWazirX’sbusinesstogenerateprofitsthatcouldbesharedwithcreditors.
WazirXCOCmembersandexecutivesinattendance
Additionally,Zettaiisexploringthecreationofasecondarydebtmarkettoofferearlyliquidityforcreditorswhoneedit.ThenextkeydatestowatchoutforthisyearwouldbeinNovemberwhenZettaiwouldseekpermissiontoholdaSchememeeting.Thecreditorswouldreviewandvoteontherestructuringproposalinthismeeting.ButtheCourtwouldhearthisapplicationforapprovalinearly2025.TheSchememeetingisexpectedtoconveneinFebruary.
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