FTX debtor strive for the dismissal of Turkish companies in the bankruptcy proceedings according to Chapter 11-
FTX debtor strive for the dismissal of Turkish companies in the bankruptcy proceedings according to Chapter 11-
FTX debtor submitted an application to the court to exclude their Turkish subsidiaries from the insolvency proceedings in accordance with Chapter 11. The lawyers of the no longer existing crypto exchange believe that the dismissal of companies is "in the best interest" of the creditors, and the FTX debtors do not believe that the Turkish authorities will work "or any liquidator" in the country with civil servants from the United States.
FTX lawyers advocate the exclusion of Turkish subsidiaries from insolvency proceedings
According to a recently submitted bankruptcy court, the debtors of FTX to take an application from the company from the procedure under Chapter 11. The FTX-related units mentioned in the court file include: ftx Türkiye and SNG-Investitions. The debtors claim that FTX Turkey was a locally operated crypto exchange and SNG Investments was a 100 % subsidiary of Alameda Research, which acted as a market maker.
Shortly after the collapse of FTX, lawyers say: "The Turkish authorities have essentially frozen and confiscated all assets of the Turkish debtors." FTX's lawyers insist that the two companies should be excluded from the insolvency proceedings, since they "believe that this is in the best interest of the debtors and their shareholders". In addition, the debtors do not believe that the Turkish government will meet the US bankruptcy proceedings.
"The debtors do not expect that the Turkish authorities or an insolvency administrator in Türkiye will apply for the recognition of their actions in the United States, and the debtors would intend to contradict such recognition if the mutuality is not available," says the file.
The message follows the FTX lawyers Questions FTX co-founder Sam Bankman-Fried (SBF) and his inner circle. The Submission states that SBF has explained what happens " and "try to help customers", but "not answered or followed" inquiries. "As a result, a court -approved summons are required," said the lawyers in the application. In the recent submission, the debtors emphasize that the dismissal of the cases of the Turkish debtors is "justified" in accordance with Chapter 11.
In view of the fact that the Turkish authorities have frozen the assets of the debtors, a conversion according to Chapter 7 would "not serve the best interests" of the assets and creditors of the debtors, adds the acts. The court document also states that the funds were confiscated by the Turkish government because the Turkish investigation authority for financial crime (Masak) carried out an investigation of FTX business relationships. The lawyers come to the conclusion that the insolvency court in Turkey would not have a "legal or practical effect".
What do you think about the recent application of FTX tulky people to exclude their Turkish subsidiaries from the bankruptcy proceedings in accordance with Chapter 11? Share your opinion in the comments below.
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