FTX turns to Apollo in the latest rescue offer
FTX turns to Apollo in the latest rescue offer
In Sam Bankman-Frieds latest Hail Mary to save his cryptocurrency exchange FTX, the former billionaire, which was under fire, has moved globally to the private equity package Apollo.
There are no signs that the attempted rescue financing package has progressed, the sources said-since Bankman-Fried has exhausted many options and seems to have only a few alternatives.
The emergency investment - which could be converted into equity, high -interest loan revolvers or direct share buying - would probably only be tasty for Apollo and other large institutional investors in a consortium model. Sources said that every investor who does it alone, regardless of the existing dry powder, would represent an oversized risk.
Every potential deal would almost certainly give a thrust, the US arm of the stock exchange, which was profitable in the past and is on a solid growth course. The rival Binance, the original admirer of FTX, suddenly pulled the connector out of his own shop to fully acquire FTX.
A spokesman for Apollo rejected a statement, as did a spokesman for FTX. Anonymity was granted to the sources to discuss sensitive business relationships.
This takeover, in which the Due Diligence and the final conditions still pending, fell apart as the US regulatory examination increased. The CEO of Binance, Changpeng "CZ" Zhao, resisted the prospect of buying the fidgeting, lack of lack of FTX without the inclusion of his counterpart based in the USA, it was said from sources.
ftx rescue options
The attempts by Banksman-Fried to save this rescue package seems to have been largely unsuccessful, since asset managers with deep pockets weigh up the probability of an official accommodation and continue to analyze the collapse of the native tokens of the stock exchange, FTT.
The costs for the rescue would be considerable, with two sources estimate the number between $ 5 and $ 10 billion. Reuters An FTX advance is in work to work to work. Somehow to find $ 9.4 billion, including the financing of Dan Loebs Third Point and Justin Sun.
Blue-chip investment banks have also received incoming calls from FTX and intermediaries who work on behalf of the stock exchange, all three sources said. But that seems to be a non -starter so far.
"I have the feeling that it would be big [private equity] shop]," said a source. "I don't think the banks would ever take the neck out for something like that."
But what would all supporters acquire at all? Possibly the tech stack and the staff of FTX-but there would be questions about the value of his assets and its customer base, both of which have dropped every hour since the Bony deal was taken off the table.
Even for $ 1, the price that CZ offered for the purchase of the entire company, the various headaches in terms of debt and regulatory problems could be too high to endure them.
"It makes no sense to buy a burning bunch of garbage," said a source.
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The contribution FTX turns to Apollo in Latest Bailout Bid is not a financial advice.
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