WazirX users vote in favor of restructuring plan

Zettai Pte Ltd., the Singapore-based parent company of WazirX, a prominent Indian cryptocurrency exchange, has announced that its proposed Scheme of Arrangement has received overwhelming support from creditors in the recently concluded voting process. 

The vote for the proposed restructuring of WazirX was filed in the High Court of Singapore, and it included all the creditors with crypto balances on the WazirX platform. The voting went down on the Kroll Issuer Services platform from March 19 to March 28.

WazirX’s restructures to repay its creditors. Source: Nischal Shetty

There was strong approval across the board

About 141,476 Scheme Creditors representing USD 195,650,529.03 in Approved Claims were involved in the voting process.

“Of Scheme Creditors who voted, 131,659 Scheme Creditors representing USD184,997,156.31 in Approved Claims cast a Scheme Vote ‘FOR’ the Scheme. This represents 93.1% by count and 94.6% by value of voting Scheme Creditors in support of the Scheme,” WazirX revealed in its press release.

The overwhelming support reportedly exceeds the statutory voting threshold requirement under Section 210 (3AB) of the Companies Act, which requires that at least a majority by count and at least 75% of the total value of claims from creditors present and voting must approve the Scheme.

It was also noted that the approval rate stayed stable between 92% and 95% across all creditor segments, meaning it did not matter how large or small their respective claims were.

Nischal Shetty, the founder of WazirX, expressed gratitude for the “strong vote of confidence,” while claiming the consistent support across their entire base is proof of the shared belief in the restructuring approach and recovery plan.

“The people have spoken. We will work hard on rebuilding and creating value for everyone[.] 93.1% of voting creditors, representing 94.6% in value, have voted YES to the Scheme of Arrangement. This strong support marks an important milestone in the recovery process and reflects a shared belief in the proposed restructuring plan,” Shetty wrote on X on April 7.

The votes were reportedly submitted for verification by an Independent Assessor in the name of Joshua Taylor and Henry Anthony Chambers of Alvarez & Marsal. Sherry said this was done to ensure total transparency and accuracy in the voting process.

After thoroughly scrutinizing everything, the Independent Assessor submitted an official verification report to Zettai and the Scheme Manager to confirm the voting results and outcome (the “Vote Report”).

The Vote Report will be made available to all Scheme Creditors soon and will also come alongside instructions on how the Updated List of Creditors, which will eventually present the voting results on an anonymized, per-creditor basis, can be viewed.

WazirX restructures after crippling hack

The restructuring is happening after WazirX’s multi-signature wallet managed with Liminal was targeted by hackers who got away with more than $230 million.

The attack was later linked to North Korean hackers. In response, WazirX locked up customers’ crypto funds and moved for legal action and restructuring in Singapore.

For months since then, WazirX investors have been patiently waiting to see when they will regain access to their funds. The company’s restructuring plan was one of the proposals that potentially would allow the exchange to resume operations.

Now that the voting results have been verified, the next agenda is the sanction by the Singapore Court. It’s been announced that Zettai will soon file an application with the Singapore Court for the sanction of the creditor-approved scheme.

If the filing is accepted by the Singapore Court, Zettai will then issue an update to all Scheme Creditors complete with a copy of the legal filings.

Subject to the Court’s sanction and the effectiveness of the Scheme, within 10 business days of the Scheme becoming legally effective, the First Distribution is scheduled to begin.

The resumption of withdrawals and trading will reportedly occur in phases to ensure compliance with regulatory guidelines.

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