The Singapore-based company has appointed a financial adviser to assess options after Zilingo's debtholders decided to resign their entire loan, leading the company to appoint a debtholder to examine their options, the board said on Friday.
Due to Zilingo's failure to fulfill prior obligations under the loan agreement, the company's lenders have decided to accelerate the repayment of the entire loan, the board said in a statement to Reuters.
The board suspended CEO and co-founder Ankiti Bose in March, with the backing of major investors, pending a probe by an independent firm they hired.
The seven-year-old Zilingo announced in April a probe into what it described as matters and sources said refers to the company's accounts, backed by investors like Sequoia Capital India and Singapore state investor Temasek.
The Zilingo board said Friday that the investigation into the allegations against Ankiti Bose, the CEO of Zilingo, is close to being completed.
A lawyer for Bose said she wouldn't say anything about her suspension or investigation.
Zilingo works with thousands of apparel factories and merchants in South Asia and Southeast Asia, connecting them to retailers worldwide. Its last funding round in 2019 was valued at nearly $1 billion, according to sources familiar with the situation.
Bose and Chief Technology Officer Dhruv Kapoor founded the company in 2015 as a Southeast Asia focused e-commerce firm, and transformed into a global supply chain enabler for the highly fragmented apparel sector.
It provides logistics, financing, and other services to factories and merchants.