On 3 September 2024, a case conference was convened in the General Division of the Singapore High Court concerning Zettai Pte. Ltd., the parent entity of WazirX, in relation to its application for a six-month moratorium. The application, prompted by the company’s financial difficulties arising from a USD 234 million cyberattack on WazirX, seeks to stay all legal proceedings and enforcement actions against the company while it undergoes restructuring. At the conference, the Court scheduled the matter for hearing on 25 September 2024, at which Zettai will present arguments in support of the moratorium, aimed at allowing the company time to reorganize its affairs and engage in negotiations with its creditors. The moratorium, if granted, would provide Zettai with the breathing space needed to reorganize its operations without facing immediate legal challenges from creditors or other parties.
The court has set deadlines for submissions in preparation for the hearing. Zettai was instructed to file a supplemental affidavit by 10 AM on 10 September 2024, detailing any additional information pertinent to the case. Following this, any objections or responses from creditors or interested parties must be filed by 17 September 2024. Zettai has been granted until 19 September to submit a reply affidavit addressing any concerns raised.
Both the applicant (Zettai) and the creditors are required to file written submissions by 23 September 2024. These submissions will outline each party’s position regarding the moratorium and will be considered during the final hearing on 25 September 2024.
The court also provided guidelines for unrepresented parties, particularly corporate entities. Representatives attending the virtual hearing on behalf of companies must submit authorization letters to confirm their ability to act on behalf of the creditor or interested party. The court also reminded all attendees to ensure proper decorum, including appropriate attire for the virtual hearing.
In preparation for the hearing, Zettai is required to submit a list of attending creditors and proposed allocation of time for oral submissions, ensuring that all parties have the opportunity to present their case.
The virtual hearing on 25 September 2024 will be decisive for Zettai’s efforts to secure a moratorium. If granted, the moratorium will give Zettai the opportunity to implement its restructuring plan, which includes managing the fallout from the USD 234 million cyberattack on WazirX and negotiating with creditors to resolve its financial challenges.
The outcome of this hearing will impact WazirX users and creditors, as the moratorium would temporarily freeze all claims, giving the company time to reorganize without immediate financial pressure. All parties are expected to present their arguments in detail during the hearing, after which the court will decide on the future course of the moratorium application.
Investors and users of WazirX will be closely monitoring the outcome of Zettai Pte. Ltd.’s moratorium application as their ability to recover assets and assess the company’s stability depends on th eucome of the application. If the court grants the moratorium, it would temporarily freeze all claims, giving the company time to reorganize without immediate financial pressure, further delaying potential recoveries for those affected by the USD 234 million loss from the recent cyberattack. While the moratorium would give Zettai the necessary time to restructure and address its financial challenges, it extends the period of uncertainty for investors and users, who remain uncertain about the extent of their asset recovery.
