Fashion startup Zilingo's board said to approve debt repayment to creditors

The move puts the embattled fashion startup in a precarious financial position, given its money-losing operations and limited access to fresh capital

Zilingo Pte’s board has authorized the repayment of loans demanded by creditors as the troubled startup fights to stave off a liquidity crisis, according to people familiar with the matter.

Weeks after the ouster of Ankiti Bose from her post as chief executive officer, company directors on  Wednesday authorized co-founder Dhruv Kapoor to transfer funds demanded by the creditors behind a $40 million debt facility with immediate effect, said the people who asked not to be named as the matter is private. Kapoor and Bose started Singapore-based Zilingo together in 2015.

The move puts the embattled fashion startup in a