On 10 September 2024, while considering the second affidavit filed by Nischal Shetty, authorised representative for Zettai Pte. Ltd, the Singapore High Court made certain amendments to its earlier correspondence regarding the ongoing moratorium application by Zettai Pte. Ltd. The affidavit provided additional information and clarifications concerning Zettai’s restructuring efforts following a cyberattack in July 2024.
The second affidavit filed by Nischal Shetty on 10 September 2024 clarified key aspects of Zettai Pte. Ltd.’s restructuring process and ongoing communication with creditors, with 431 creditors supporting the moratorium. It also corrected errors from the initial filing regarding user claims, clarified Zettai’s control of cryptocurrency tokens after the July cyberattack, and outlined ongoing discussions with potential investors for restructuring. The affidavit confirmed Zettai’s compliance with court-mandated procedural requirements, ensuring transparency throughout the process.
The affidavit corrected certain errors in the initial affidavit in relation to the number of users and the total amount of claims. The revised figures were provided to ensure a more accurate representation of the liabilities Zettai is facing. The affidavit clarified Zettai’s ownership and control over cryptocurrency assets that were transferred from Binance under protest. It was emphasised that Zettai has taken responsibility for managing user liabilities in connection with these assets, following the July 2024 cyberattack. The clarification also indicated that another entity, Zanmai India, does not hold or control any cryptocurrency, dispelling potential confusion regarding the division of control between the two entities.
The affidavit updated the court on the progress of discussions with potential investors. Several non-disclosure agreements have been signed, and Zettai has begun sharing a draft restructuring proposal with creditors. This proposal outlines recovery options, including potential cash injections and revenue-sharing models, as part of the company’s broader restructuring efforts. The updates were necessary to provide a comprehensive picture of Zettai’s current financial strategy and its efforts to engage with key stakeholders.
The affidavit confirmed that Zettai has complied with all procedural requirements set forth by the court, including publishing notices of the moratorium application and maintaining transparent communication with creditors. These amendments reflect Zettai’s commitment to fulfilling its legal obligations and ensuring that the restructuring process is conducted in a fair and transparent manner.
In light of the second affidavit, the Singapore High Court issued a revised directive on 10 September 2024, adjusting the hearing date for the moratorium application to 25 September 2024. This will be conducted via Zoom and overseen by Judicial Commissioner Kristy Tan. The Court also outlined deadlines for the filing of supplemental affidavits, objections, and written submissions, ensuring an efficient and organised process as Zettai works toward securing an extended moratorium.
The court’s correspondence, directed to Zettai’s legal representatives at Rajah & Tann Singapore LLP, modified the timeline for the hearing of the moratorium application. Originally scheduled for a later date, the hearing has been brought forward to 25 September 2024, to be conducted via Zoom webinar.
In the letter, a Zoom registration link was provided for any affected parties who wish to attend, with clear guidance on protocols such as restricting attendees from addressing the court or activating their cameras unless approved. Watermarking technology will be employed during the session, and unauthorised recording or dissemination of the hearing’s video or audio will be strictly prohibited, with potential civil or criminal consequences for violations.
The court’s letter also confirmed that, aside from the updated hearing schedule, all prior directions from the court’s 5 September 2024 correspondence remain unchanged. Additionally, Zettai and its legal team were instructed to circulate an information note explaining Section 64 of Singapore’s Insolvency, Restructuring, and Dissolution Act to all parties potentially affected by the moratorium application. This note is intended to help those involved understand the proceedings but does not serve as legal advice.
