Beleaguered FTX Trading Ltd. and 101 other affiliated firms or FTX debtors announced that it initiated a strategic review of its global assets as a part of the Chapter 11 bankruptcy process.
According to the press release, the strategic review is started to maximize recoverable value for stakeholders.
The FTX Debtors have started preparing certain businesses for sale or restructuring and have hired Perella Weinberg Partners LP (PWP) as the lead investment bank for this.
However, the court must approve the engagement of PWP for further proceedings. Also, Kroll has been appointed as the FTX Debtors’ claims agent.
FTX’s new CEO John J. Ray III, stated many regulated or licensed subsidiaries of FTX have solvent balance sheets. He added subsidiaries such as LedgerX and Embed Clearing are not debtors in the bankruptcy filing.
The FTX Debtors have submitted a number of motions to the bankruptcy court in an effort to get interim relief.
If granted, it would permit the operation of a new global cash management system and the regular payment of essential vendors and vendors at international subsidiaries. A hearing has been scheduled for November 22, 2022
The FTX Debtors have not established a deadline for this process, and they do not intend to publish any new developments until they have decided that doing so is appropriate or essential.
Ray noted, “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.”