- From March 19 to 28th 2025, users via the KIS platform will be able to vote.
- At least half of the creditors must vote in favor of the system for it to be approved.
Indian Crypto Exchange Wazirx CEO Nichel shetty has requested users to approve a restructuring schedule after hedge. At least half of the creditors must vote in favor of the system for it to be approved. And each class’s value -weighted creditors must be present and vote for it to pass.
The court’s approval of the system will make it enforceable to the company and its creditors when it is authorized. Clear timelines and openness are achieved through this process, which enables informed decision -making.
All eyes on creditors
According to Nischal, customers can now access their share of the rebalanced net -flowing platform assets (NLPA) in Wazirx app. Which would be made available in the first distribution. Provided that the proposed system is accepted by creditors and sanctioned by the court.
From March 19 to 28th 2025, users via the KIS platform will be able to vote for the proposed system. Ten working days after the effective schedule date, or in April or May 2025, most recently the first distribution will be completed if the system is effective.
In addition, on average, creditors will be expected to receive about 85.3% of their balances back in USD from the recharged net -flowing platform assets. The reset tokens (RTS) can be distributed later to facilitate this process for potential subsequent distributions.
In order to facilitate future recycling of assets and profit sharing from reactivation of the Wazirx platform, creditors will receive recovery tokens (RTS) on a pro-line basis.
Together with the proposed system, there are already established plans to recover illikvid and stolen assets. This is expected to be done through forensic investigations and legal action. The next conceivable result is liquidation in the event that the system’s approval does not succeed. It is imperative that ownership is determined before the liquidation can begin. Due to the high level of risk and uncertainty, recovery in a liquidation process is to be very delayed.
The high liquidation costs caused by the huge creditor base, the requirements of the liquidator charter and the loss of important personnel and infrastructure in a liquidation would result in less recovery compared to a restructuring.
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