Under the preliminary proposal, the investor group will inject US$8 million ($11.1 million) in new equity in a newly incorporated entity in tranches, while the remaining assets and the old corporate entity will be liquidated in due course, according to Kapoor’s email sent to investors and seen by Bloomberg News. All outstanding debt owed to creditor Zorro Assets Ltd. will be frozen for three years, according to email.
The move comes as Zilingo’s board is scheduled to meet on Monday to discuss the future of the company, according to people with knowledge of the matter. Allegations of financial irregularities in March prompted an investigation into the company, valued at US$970 million in 2019, and led to the dismissal of co-founder Ankiti Bose as chief executive officer in May. Her ouster plunged the once high-flying startup into crisis and sent shockwaves through Singapore’s technology industry.
