4 months ago 1 min read

FTX Begins the Bankruptcy Procedure by Evaluating Its Assets


As part of the cryptocurrency exchange's Chapter 11 bankruptcy protection procedures with New York-based financial services company Perella Weinberg Partners L.P., FTX has started an examination of its global assets. As its principal investment bank, (PWP) was retained.

According to a statement released by FTX today, the court must first approve the PWP engagement. FTX.com and 101 connected entities, collectively referred to in the proceedings as the FTX debtors, will have their assets reviewed by PWP if they are given the go-ahead. FTX and its connected firms may decide to reorganize or sell some of the business interests they now have as a result of this asset review.

The asset review has been going on for the past week, according to John J. Ray, the new CEO of FTX. Ray added:

"We are happy to learn that many of FTX's regulated or licensed companies, both inside and outside the United States, have sound balance sheets, responsible management, and significant franchises."

After the defunct cryptocurrency exchange filed for bankruptcy, Ray was named CEO of FTX. Soon after taking over the company, the new CEO criticized the former administration of FTX under founder Sam Bankman-Fried. At the time, Ray's statements were the most recent in a long line of allegations concerning dubious deals that took place in the cryptocurrency exchange and its sister company Alameda Research. Ray slammed the previous leadership for what he called a "total breakdown of corporate governance".

The declared objective for Ray and the new management during this time is to maintain the value of the franchise assets. As Ray called for everyone's patience as the process developed, he stated:

"It will be a priority of ours in the coming weeks to investigate sales, recapitalizations, or other strategic transactions with respect to these subsidiaries, and others that we identify as our work progresses."
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