How is the bankruptcy application for FTX and its customers continue?
How is the bankruptcy application for FTX and its customers continue?
ftx now relies on the new CEO John J. Ray III, who was consulted years ago to monitor the liquidation of the collapsed energy company Enron according to his balance sheet scandal, while it is looking for the next steps after bankruptcy.
The bankruptcy proceedings could take several months, said an insolvency lawyer, as the stock exchange and its subsidiaries formulate renovation plans. FTX founder Sam Bankman-Fried-who resigned on Friday morning as CEO from FTX-tweeted on Friday that he wanted to try to give an update for user recovery "as soon as possible".
5) I put all the details together, but I was shocked when I saw that things were disguised as they did at the beginning of this week.
I will soon write a more complete contribution about Play by Play, but I would like to make sure that I do it right if I do it.
- Sbf (@Sbf_ftx) 11. November 2022
About an hour after the crypto exchange FTX announced that-and around 130 associated companies-bankruptcy proceedings according to Chapter 11 had initiated, Bankman-Fried apologized in a number of tweets and familiar Ray.
"This does not necessarily mean the end of the companies or their ability to provide their customers primarily values and means, and can match others," he said. "Ultimately, I am optimistic that Mr. Ray and others can help to provide the best."
The 134 companies that register bankruptcy- included in this file ledger x, ftx digital Markets, FTX Australia Pty and FTX Express Pay exclude, the company said.
A spokesman for the FTX PR agency announced that Blockworks were trying to get in touch with the new management of the company.
In 2007ray earned $ 1.2 million a year as a full -time director of Enron. This reported the chicago tribune . At that time, he "tried to wipe out the insolvency claims of institutions that bought the Enron debts of banks that were involved in the alleged misconduct," said the publication.
In the history of the Chicago Tribune, it is said that Ray began working at the Mayer Brown law firm in Chicago in 1984 before ending up at Fruit of the Loom. He was General Counsel for the clothing company when it registered bankruptcy in 1999, and later took on post-insolvency functions at Burlington Industries and Hayes Lemmerz International.
Bankman-Fried promises FTX "User Recovery" update after bankruptcy
Bankman-Fried tweeted on Friday morning that he hoped that the bankruptcy proceedings could bring transparency, trust and governance.
ftx users-some of whom said that their entire assets were bound on the platform-will carefully observe the insolvency process.
"I will work on clarity as soon as possible about where things are related to the restoration of users," Banksman-Fried tweeted on Friday.
Daniel Besikof, a partner at Loeb & Loeb, said Blockworks that FTX's bankruptcy means that its customers will probably still not be able to withdraw from their accounts. The stock exchange stopped payments for most users on Tuesday.
"In the long term it will depend on a number of things - especially who belongs to the coins or have claims against you, which coins are missing and can these missing coins be restored?" he said.
Pablo Bonjour A managing partner of the restructuring company Macco, said in an email that some of the subunities of FTX-like FTX US could draw significant value from the restructuring,
"The crypto prices will continue to decrease with another wave of sales, but this opens up the opportunity to get in and acquire FTX US and other companies at reduced prices," he added.
Bonjour said that FTX will enter survival mode after the bankruptcy application by reducing costs, negotiating extensions, stroking all new projects and receiving his assets under control.
Besikof described the collapse of FTX as "breathtakingly fast", but noted that the competition could take at least several months because the company formulates a plan that maximizes the return flows for its creditors.
The FTX bankruptcy proceedings is not an isolated case for the industry this year. Voyager Digital reported bankruptcy at the beginning of July, while crypto loan Celsius initiated insolvency proceedings about a week later after the collapse of Terra's algorithmic stable coin.
"Due to the burden that FTX's bankruptcy will have for a large number of people, I assume that FTX will try to drive the case as soon as possible," said Besikof. "But as Celsius' customers have seen, which was registered in July and is far from complete, the bankruptcy takes time."
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The contribution How is the bankruptcy application for FTX and its customers continue? is not a financial advice.