FTX conducts strategic assessment; requests judicial relief to pay important vendors

Collapsed crypto exchange FTX said on Saturday that it has started a strategic evaluation of its worldwide assets and is putting some businesses up for sale or reorganisation. Together with around 101 associated companies, FTX also requested judicial intervention to permit the functioning of a new worldwide cash management system and payment to its essential suppliers. In one of the most publicised cryptocurrency meltdowns, the exchange and its affiliates filed for bankruptcy in Delaware on November 11. As a result, an estimated million clients and other investors are expected to suffer total losses in the billions of dollars.

In a court document filed on Saturday, FTX requested authorization to pay its crucial vendors up to $17.5 million in prepetition claims and up to $9.3 million in interim orders.

The exchange said that if the requested judicial injunction is not granted, it will cause “immediate and irreparable harm” to its operations.

“Based on our review over the past week, we are pleased to learn that many regulated or licensed subsidiaries of FTX, within and outside of the United States, have solvent balance sheets, responsible management and valuable franchises,” FTX’s new Chief Executive Officer John Ray said.

In order to assist with the selling process, the business, subject to court approval, has named Perella Weinberg Partners LP as its main investment bank.

“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,” Ray said.

(With inputs from agencies)