Two months after losing $230 million (roughly Rs. 1,900 crore) to hackers, WazirX is still looking for ways to involve 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 majority shareholder of Singapore-based WazirX, will oversee the establishment of a 10-member COC, selected through a two-phase process from a pool of creditors who have expressed interest in joining the board.
“Creditors will be ranked in terms of smallest to largest claims, with this total list being divided into 10 separate tranches each representing 10 percent of the claims, the sum of all tranches being $546.5 million (approximately Rs. 4,588 crore) in claims” , the exchange explained in a blog post. “One COC member will be randomly selected from each tranche of the COC member pool.”
Zettai could be required to submit the identities of select COC members to a Singapore court, which recently granted WazirX a four-month moratorium on its financial restructuring. Zettai is working with financial restructuring firm Kroll to develop a plan.
The first phase of member selection is expected to end on Thursday, and Zettai plans to email certain creditors identified in Phase 1. Those creditors will have until Oct. 7 to show their interest in being COC members. Second phase It is planned that the selection phase will be completed by October 8th, and the finally selected ten members will be delivered by October 9th.
“The company (Zettai) and its advisers aim to hold the first COC meeting within a week of the COC’s establishment and will give at least 48 hours’ notice to selected COC members for all proposed COC meetings,” the announcement said on the blog.
Reactions to this decision by WazirX emerged on social media with people questioning WazirX about the potential benefits of establishing a COC during the restructuring process. The exchange is scheduled to host its third virtual town hall meeting on Friday to explain the COC selection process, with more details expected to be released in the coming days.
