WazirX has announced the formation of the Committee of Creditors (COC) as part of its ongoing restructuring efforts. The Committee will be composed of selected creditors and will act on resolving the company’s financial challenges.
The company has outlined a timeline for the formation of the COC. Phase 1 of the selection process is expected to be completed by October 3, 2024. Creditors selected in this phase must express their interest in participating by October 7.
The final committee is expected to be announced by October 9, and the first COC meeting will be held shortly after that.
The hacked cryptocurrency platform claims the selection methodology is designed to balance creditor count and claim value, avoiding bases that could disproportionately benefit more minor claimants.
WazirX outlined several key responsibilities for the COC members, which include acting as a sounding board for creditor concerns, monitoring the progress of the restructuring, and representing the interests of the broader creditor base.
However, the COC will have no decision-making power beyond offering feedback. While the company and its advisors are obligated to consult with the COC, they are not required to integrate the committee’s recommendations into the final restructuring terms.
A notable feature of the COC is the confidentiality of its members. For security reasons, the identities of COC members will only be shared with other members and may need to be disclosed to the Singapore Court. All creditors will receive redacted minutes from COC meetings to ensure transparency while maintaining privacy.
WazirX has divided its creditors into tranches based on claim size. The company will randomly select 1% of creditors from each tranche to form a ‘Contingent Creditor Pool’. Those selected can express their interest in joining the COC, and 10 members, each representing a different tranche, will be randomly chosen to serve on the committee.
WazirX has also scheduled a third town hall meeting for October 4, 2024, at which company representatives will explain the COC selection process in more detail.
Last month, the Singapore Court granted Wazirx a four-month conditional moratorium.
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