The FTX Group, with 101 additional affiliated companies (the “FTX Debtors“), announced that as a part of the Chapter 11 bankruptcy process, they are launching a strategic review of their global assets to begin to maximize recoverable value for stakeholders. The FTX Debtors have engaged Perella Weinberg Partners LP (“PWP”) as the lead investment bank and commenced preparing to sell certain businesses and reorganization the new CEO, John j. Ray announced.
Based on our review over the past week, we are pleased to learn that many regulated or licensed subsidiaries of FTX, within and outside of the United States, have solvent balance sheets, responsible management and valuable franchises”John J. Ray, FTX CEO
Some of the FTX subsidiaries, such as LedgerX LLC or Embed Clearing LLC, for example, are not debtors in the U.S. chapter 11 bankruptcy case. Other subsidiaries such as FTX Japan KK, Quoine Pte. Ltd, FTX Turkey Teknoloji Ve Ticaret A.Ş., FTX EU Ltd, FTX Exchange FZE, and Zubr Exchange Ltd are debtors. Ray wants to explore sales, recapitalization, or other strategic transactions concerning these subsidiaries and others.
The FTX Debtors have filed various motions with the Bankruptcy Court seeking interim relief from the Court that, if granted, would allow the operation of a new global cash management system and the ordinary course payment of critical vendors and vendors at foreign subsidiaries. A hearing has been scheduled for Tuesday, November 22, 2022.
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