First Distribution and Recovery Tokens: What WazirX Users Need to Know

As Zettai moves closer to Restructuring, we aim to make every aspect of the process as transparent and accessible as possible. We recognize the concerns of Creditors and have put together this article to provide a better understanding of Recovery Tokens and their role in the Rebalancing Scheme.

The Singapore High Court has granted leave to Zettai Pte Ltd, allowing the Company to convene a scheme meeting with the Creditors of the crypto exchange, WazirX.

This decision marks a significant step in Zettai’s efforts to distribute Net Liquid Platform Assets while also working towards reviving Platform operations.

Recovery Tokens

• Scheme Creditors will be issued Recovery Tokens on a pro-rata basis. Each Scheme Creditor will receive Recovery Tokens in proportion to their Approved Claim relative to the total Approved Claims.
• The primary purpose of the Recovery Tokens is to receive additional recoveries pursuant to the Scheme by way of a purchase.

First Distribution

• The Company will make the First Distribution within 10 Business days upon the Scheme being effective utilizing the available Net Liquid Platform Assets (NLPA).
• Distributions will be made in the respective source token denominations of each Scheme Creditor’s Approved Claim.

Subsequent Distributions via Recovery Token Purchases

• After the First Distribution, each subsequent Distribution will be made by way of an offer to purchase Recovery Tokens held by a Recovery Token Holder.
• The Recovery Tokens will be issued on a pro-rata basis, based on each Scheme Creditor’s Approved Claim in proportion to the aggregate Approved Claims.
• A Recovery Token Purchase Milestone will take place at the end of every recurring 3-month period commencing from the Recovery Tokens Issue Date.
• There will be opportunities for additional recoveries to the Recovery Token Holders who are Scheme Creditors. Net Shared Surpluses and recovered Illiquid Platform Assets will be the primary drivers of Milestone Amounts used to improve Scheme Creditor recoveries.

Commitment to Recovery

With the Scheme of Arrangement, we aim to maximize recoveries for all the Creditors while maintaining fair and equitable distribution. With Rebalancing, Recovery Tokens, and ongoing recovery efforts, we are committed to restoring the trust.

The decision to support the Scheme lies with the Creditors. We recommend Creditors to evaluate the pros and cons and actively participate in the Voting process. The power is in your hands; you can collectively contribute to shaping a resolution.