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WazirX Debt Restructuring Clears Major Hurdle As Creditors Approve Recovery Plan
In a crucial development, WazirX has successfully secured the approval of its debt restructuring plan from creditors, clearing a significant hurdle in its recovery process. The company’s parent firm, Zettai Pte Ltd., submitted a Scheme of Arrangement for creditor approval, which has garnered an overwhelming 93.1% endorsement.
Notably, more than 130,000 creditors participated in the voting process, with 131,659 casting their ballots in favor of the proposal. This outcome reflects an astonishing 94.6% of the value represented by participating creditors, signaling a widespread approval for Zettai’s plan to settle user balances and restore platform activity.
The Scheme of Arrangement is aimed at addressing the impact of a 2023 cyber attack that restricted user access to their accounts. The initiative will enable phased fund distribution to affected users, marking an important milestone in WazirX’s recovery process.
As a result of this significant development, WazirX is now poised to begin distributing funds within ten business days of court approval. Withdrawals and platform activity are expected to resume in phases, with regulatory conditions necessitating the phased reopening.
The company has emphasized that it remains responsible for filing the necessary court documents, and users can expect a separate update detailing recovery timelines once the plan is approved by the Singapore High Court. The phased approach is deemed essential to ensure asset security and system stability during this recovery period.
WazirX’s founder, Nischal Shetty, has expressed gratitude towards creditors, acknowledging their backing of the restructuring method chosen to restore user access. This approval represents a crucial step forward for the exchange, which faced a critical outage caused by the 2023 cyber breach.
The development brings WazirX closer to returning frozen funds to its user base and marks an essential step in the company’s ongoing recovery efforts. The process now necessitates Zettai’s filing of court documents, after which the plan will become effective once approved by the Singapore High Court.
Source: https://cryptonewsland.com/wazirx-debt-restructuring-clears-major-hurdle-as-creditors-approve-recovery-plan/
