Two months after it lost $230 million (roughhly Rs. 1,900 crore) to hackers, WazirX is still looking for ways to include its community members in the ongoing restructuring process. The beleaguered crypto exchange has announced that it is in the process of forming a ‘Committee of Creditors’ (COC). Zettai, the Singapore-based majority stakeholder entity of WazirX will oversee the setting up of the COC that will comprise 10 members, selected through a two-phased process from a pool of creditors who have shown an interest in joining the committee.
“Creditors will be sorted in terms of smallest claims to largest claims, with this overall list being broken into 10 separate tranches each representing 10 percent of claims, with the sum of all tranches amounting to $546.5 million (roughly Rs. 4,588 crore) of claims,” the exchange explained in a blog post. “One COC member will be randomly selected from each of the COC member pool tranches.”
Zettai may be required to submit the identities of the selected COC members at the Singapore Court, that recently granted WazirX a four-month moratorium for its financial restructuring. Zettai is working with a financial restructuring firm Kroll to map out a plan.
The first phase of the member selection is expected to conclude on Thursday, and Zettai plans to issue emails to specific creditors identified in Phase 1. These creditors will have to indicate their interest in being a COC member by October 7. The second phase of the selection phase is estimated to be completed by October 8 and the finally selected ten members will be provided by October 9.
“The Company (Zettai) and its advisors aim to hold the first COC meeting within a week of the formation of the COC and will provide at least 48 hours of notice to selected COC members for all proposed COC meetings,” the blog post states.
Reactions to this decision from WazirX have surfaced on social media with people questioning WazirX about the potential benefits of setting up the COC during the restructuring process. The exchange is set to host its third virtual town hall meeting on Friday to explain the COC selection process, and more details are expected to emerge in the coming days.
