According to people familiar with the matter, the co-founders of Zilingo Ptey made a last-ditch offer to buy the embattled fashion e-commerce platform, as the board debates its future.
Co-founder Dhruv Kapoor on Sunday offered to do a management buyout to the company Singapore-based company’s board, according to the people, who asked not to be named because the matter is private. People said they had secured commitments from a small group of new investors, including a US private equity firm.
Under the initial offer, according to Kapoor’s email sent to investors and seen by Bloomberg, the investor group would invest $8 million in new equity in a newly incorporated entity, while remaining assets and liquidating the old corporate entity in due course. Will go news. According to the email, all outstanding debts of creditor Zorro Assets Ltd will remain frozen for three years.
According to people with knowledge of the matter, the move comes after Zilingo’s board met on Monday to discuss the future of the company. Allegations of financial irregularities prompted an investigation into the company, which was valued at $970 million in 2019, and the sacking of co-founder Ankiti Bose as chief executive officer in May.
This story has been published without modification in text from a wire agency feed. Only the title has been changed.