WazirX announces formation of a Committee of Creditors ahead of post-hack restructuring

Indian cryptocurrency exchange WazirX announced the formation of a Committee of Creditors (COC) ahead of a Scheme of Arrangement that the company said it wants to present to its customers

WazirX lost over $230 million in assets when a wallet was hacked in July [File] | Photo Credit: REUTERS

More than two months after a cyberattack against a digital wallet that cost the company over $230 million, Indian crypto exchange WazirX announced that it was forming a Committee of Creditors (COC), allowing chosen representatives to interact with the company as WazirX moves for restructuring in Singapore.

WazirX shared a selection process for the Committee of Creditors, whose chosen members will have to give feedback on creditors’ preferences and priorities, attend meetings when required, and monitor the progress of the restructuring.

“A COC plays a crucial consultative role in any restructuring proceeding to facilitate the exchange of ideas of a large creditor base with the Company and its advisors – this allows a streamlined feedback process,” said WazirX in its blog post.

According to the company, creditors will be organised from those with the smallest claims to the largest claims, before being split into 10 “Tranches,” each representing 10% of claims. 1% of creditors from each Tranch will be selected at random to create a Contingent Credit Pool, that will come to around 43,000 creditors out of 4.3 million creditors in total.

“The Company and its advisors intend to form a COC comprising 10 COC members,” said WazirX in its blog.

The company said it will be conducting a virtual town hall meeting on Friday (October 4, 2024) at 4 PM SGT / 1.30 PM IST to take its creditors through the process.

“Concurrently, all Creditors will be informed of the successful formation of a COC by 9 October 2024,” said WazirX, as CEO Nischal Shetty urged customers to join in.

“The path to resolution lies in unity, moving forward hand in hand, driven by the shared goal of a fair and swift outcome for everyone,” he posted on X on September 30.

Published - October 03, 2024 01:54 pm IST