Update on WazirX Restructuring Scheme: Recovery Token allocation complete
WazirX has completed the allocation of Recovery Tokens (RTs) to all eligible users, under the court-approved Scheme. Following the platform$B!G(Bs restart on 24 October, WazirX successfully distributed approximately 85 percent of Rebalanced Net Liquid Platform Assets to eligible users, within 10 business days, as outlined in the Scheme.
The allocation of Recovery Tokens has now been completed within the 60 business day timeline specified in the Scheme. Eligible users can view their allocated RTs directly on the Funds page within the WazirX app.
Recovery Tokens are issued to Scheme Creditors on a pro rata basis, aligned with each user$B!G(Bs Approved Claim. The tokens are designed to ensure that users remain proportionally included in any future recoveries realised by the platform over time.
Under the Scheme, recoveries are evaluated in recurring three-month periods. During such an evaluation cycle when at least USD 10 million is realised, a portion of that value is allocated for the buyback of the Recovery Tokens. If the value recovered by the platform in a period is less than USD 10 million, the recovery claim isn$B!G(Bt lost; it simply rolls over into the next period and is combined with new recoveries until a distribution becomes viable.
At present, Recovery Tokens are not tradable. Subject to applicable legal and regulatory requirements, RTs may become tradable in the future.
Here$B!G(Bs a simplified example, to understand how RTs are being allotted:
* As of 18th July $B!G(B24, Priya (a Creditor) had a total claim of $10,000 in the WazirX platform.
* $546 million is the Total Claims as of July 18, 2024, 1:00 PM IST.
* A total of 1 billion Recovery Tokens will be distributed among Creditors.
* Claim % Calculation is the formula that calculates how much percentage of the total claim belongs to Priya.
* RT Allocation: (Creditors$B!G(B Claim % * Total Recovery Tokens)
This formula calculates how many RT Priya will be allotted. After all the calculations, Priya will be allotted 18,315.0183 RT.
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