FTX initiates a strategic review and seeks judicial intervention to pay important vendors

FTX initiates a strategic review and seeks judicial intervention to pay important vendors

Crypto exchange collapsed FTX said on Saturday that it has begun a strategic evaluation of its worldwide assets and is prepared to sell or reorganize some operations.

FTX and roughly 101 related entities also requested court intervention to facilitate the functioning of a new global cash management system and payment to important vendors.

On November 11, the exchange and its affiliates filed for bankruptcy in Delaware, in one of the most high-profile crypto meltdowns, leaving an estimated 1 million clients and other investors with total losses in the billions of dollars.

In a court filing on Saturday, FTX sought for authorization to pay prepetition claims to important vendors of up to $9.3 million after an interim order and up to $17.5 million after the final decision.

According to the exchange, failure to get the requested judicial remedy will result in “immediate and irreparable harm” to its operations.

“Based on our evaluation over the last week, we are glad to see that many of FTX’s regulated or licensed companies, both within and outside the United States, have solvent balance sheets, competent management, and valuable brands,” stated FTX’s new Chief Executive Officer John Ray.

Subject to court clearance, the business has engaged Perella Weinberg Partners LP as its principal investment bank to assist with the selling process.

“I humbly request that all of our workers, contractors, consumers, regulators, and government stakeholders be patient with us while we implement the arrangements that corporate governance deficiencies at FTX prohibited us from implementing prior to filing our chapter 11 cases,” Ray stated.

 

»FTX initiates a strategic review and seeks judicial intervention to pay important vendors«

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