Debt-Saddled Zipmex Looks To Restructure, Irks Creditors With Compensation Offer
Portfolio Pulse from Murtuza Merchant
Cryptocurrency platform Zipmex is offering creditors compensation as part of its restructuring, with proposed rates between 3.35 and 29.35 cents per dollar. The company has a $97.1 million debt, including losses from Babel Finance and exposure to bankrupt Celsius Network. Major creditors are demanding an independent financial evaluation of Zipmex. The company had previously suspended withdrawals and sought creditor protection, and a funding deal with V Ventures fell through when a payment was missed in March.

November 29, 2023 | 6:56 pm
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Zipmex has a $5 million risk exposure to the bankrupt Celsius Network, which may affect the CEL token's perception and value.
Zipmex's financial troubles and its connection to Celsius Network could further dampen investor confidence in CEL, potentially leading to a decrease in its value in the short term. The negative sentiment surrounding Zipmex's debt issues and the demand for an independent financial evaluation could exacerbate the already bearish outlook for CEL, given its bankruptcy status.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70