According to persons familiar with the situation, Zilingo Pte co-founders made a last-ditch effort to buy the troubled apparel e-commerce platform as the board debates its future.
According to the persons, co-founder Dhurv Kapoor recommended a management buyout to the Singapore-based company’s board on Sunday.
They asked not to be identified since the matter is confidential. According to the persons, he has obtained commitments from a small group of new investors, including a US private equity firm.
According to Kapoor’s email to investors, which was reviewed by Bloomberg News, the investor group will inject $8 million in new equity in a newly established organisation in tranches, while the remaining assets and the existing corporate entity will be liquidated in due course.
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According to an email, all outstanding debt owed to creditor Zorro Assets Ltd. would be frozen for three years.
According to persons familiar with the situation, Zilingo’s board of directors is due to meet on Monday to debate the company’s future. In March, allegations of financial irregularities spurred an investigation into the company, which was valued at $970 million in 2019, and resulted in the removal of co-founder Ankiti Bose as CEO in May.