FTX Latest News FTX Trading Ltd. (d.b.a. FTX.com), and approximately 101 additional affiliated companies (together, the “FTX Debtors”), today announced that as a part of the Chapter 11 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 lead investment bank and commenced preparation of certain businesses for sale or reorganization. The engagement of PWP is subject to Court approval.
“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,” said Mr. John J. Ray, III. “Some of these subsidiaries – such as LedgerX LLC and Embed Clearing LLC, for example – are not debtors in the chapter 11 cases. 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. Either way, it will be a priority of ours in the coming weeks to explore sales, recapitalizations or other strategic transactions with respect to these subsidiaries, and others that we identify as our work continues.”
Mr. Ray further commented, “I have instructed the team at the FTX Debtors to prioritize the preservation of franchise value as best we can in these difficult circumstances. I respectfully ask all of our employees, vendors, customers, regulators and government stakeholders to be patient with us as we put in place the arrangements that corporate governance failures at FTX prevented us from putting in place prior to filing our chapter 11 cases.”
The FTX Debtors have filed today 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.
The FTX Debtors have not set a specific timetable for completion of this process, and it does not intend to disclose further developments unless and until it determines that further disclosure is appropriate or necessary.
The FTX Debtors have established Kroll as its claims agent, and all official documents filed with the U.S. Bankruptcy Court can be found online at https://cases.ra.kroll.com/FTX/.
