FTX Trading Ltd., and nearly 101 other firms affiliated with it (including the FTX Debtors), have declared the Chapter 11 procedures. The company declared that they are releasing the review of the global assets thereof to start maximizing its stakeholders’ value. The FTX Debtors have joined Perella Weinberg Partners LP (PWP) as the top investment bank along with starting planning for the reorganization or sale of particular businesses. The PWP’s engagement requires approval from the court.
FTX Issues Strategic Review Targeting Its Global Assets
Mr. J. Ray, III stated that in line with their review during the previous week, they are enthusiastic to know that several licensed or regulated FTX sub-branches (outside or within the US) possess solvent balance sheets, valuable franchises, and responsible management. As per him, a few among the respective subsidiaries, taking into account Embed Clearing LLC and LedgerX LLC, are not categorized as debtors under the chapter 11 procedures.
He added that the rest of the subsidiaries, like Zubr Exchange Ltd, FTX Exchange FZE, FTX EU Ltd, FTX Turkey Teknoloji Ve Ticaret A.Ş., Quoine Pte. Ltd and FTX Japan KK are debtors. In each of the cases, according to him, they would prioritize in the next weeks to delve into recapitalizations, sales, or the rest of the systematic transfers via the above-mentioned subsidiaries with the progress of their work.
As remarked by Mr. Ray, he has directed the team at the FTX Debtors to prefer the franchise value’s protection in the best way possible in the current problematic circumstances. He has asked the entirety of the government stakeholders, regulators, consumers, vendors, and their workers, to show patience as the platform makes the arrangements to deal with the governance failures FTX faced before filing for chapter 11 cases.
FTX Debtors Files Diverse Motions to Have an Interim Relief
Today, the FTX Debtors have submitted diverse motions under the Bankruptcy Court while pursuing an interim break from the court. The respective relief, if the court grants it, would permit the operations by the critical vendors as well as the foreign subsidiaries-based vendors. The court has scheduled a hearing for the 22nd of November.
No particular timetable has yet been established by the FTX Debtors for this procedure’s accomplishment. The entity does not want to provide more details on the developments until and unless it ensures that it is a necessary or adequate move.
