(Bloomberg) – The co-founders of Zilingo Pte have made a final bid to buy the struggling fashion e-commerce platform as the board debates its future, according to people familiar with the matter.

Co-founder Dhurv Kapoor offered a management buyout to the Singapore-based company’s board on Sunday, according to the people, who asked not to be named because the matter is private. It has secured commitments from a small group of new investors, including a US private equity firm, the sources said.

Under the preliminary proposal, the investor group will inject $8 million of new equity into a newly incorporated entity in tranches, while the remaining assets and the old corporate entity will be liquidated in due course, according to the report. Kapoor’s email sent to investors and seen by Bloomberg. New. All unpaid debts due to creditor Zorro Assets Ltd. will be frozen for three years, according to an email.

The move comes as Zilingo’s board is due to meet on Monday to discuss the company’s future, according to people with knowledge of the matter. Allegations of financial irregularities in March sparked an investigation into the company, valued at $970 million in 2019, and led to the firing of co-founder Ankiti Bose as CEO in May.

Read more: Zilingo board says it approves debt repayment to creditors

©2022 Bloomberg LP