InvestorQ : What is happening to Zilingo and what does the future hold?
Priyanka N made post

What is happening to Zilingo and what does the future hold?

Neelam Naik answered.
8 months ago

The highly beleaguered Zilingo from Singapore may be close to liquidation as the best option. However, there has been a bailout solution by the founders offering to buy out the entire company as a management buyout plan. The advisor, Deloitte LLP, has been keen to sell off the company post liquidation before it starts depleting value. Zilingo was co-founded by Dhruv Kapoor, who will be part of the management buyout offer. The board will consider both the liquidation suggestion of Deloitte and the buyout offer by Dhruv Kapoor.

Apparently, Kapoor has secured commitments from a group of new investors, under which the investors will inject $8 million in new equity in tranches even as the remaining assets will be liquidated. Interestingly, the management buyout is also supported by Ankiti Bose, the former CEO of Zilingo, who had been ousted due to massive financial irregularities in the firm. Back in 1970, Zilingo was valued at $970 million in 2019, post which the crisis started.