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Key takeaways:
- The company has so far seen “dozens of unsolicited bids,” according to the filing.
- If the sale of assets is outside the regular course of business, bankrupt enterprises need to get the court’s approval.
The defunct cryptocurrency exchange FTX has submitted a motion to the US Bankruptcy Court asking for approval to sell four companies. The named companies include FTX Japan, FTX Europe, LedgerX, a derivatives exchange, and Embed, a stock-clearing platform.
The company is trying to raise money through the sale of the subsidiary businesses in order to fulfil its billion-dollar debt to creditors.
Attorneys for FTX stated in a statement submitted to the Bankruptcy Court of Delaware that the sale of some subsidiaries or the search for other significant transactions was a top priority for the company’s present management.
The attorneys write in their filing from December 15 that each of these companies has been subject to regulatory pressure, which “merit[s] an expedited sale process,” adding:
“The risk to the value of the assets and the risk of a permanent revocation of licences increases with the length of the operations suspension.”
The attorneys for the insolvent cryptocurrency exchange further stated that because all four companies were only recently bought, their operations continued to be essentially separate from the tarnished global parent.
LedgerX, which is doing business as FTX US Derivatives, was praised earlier by Rostin Behnam, the chair of the CFTC, who called it a success tale despite the fall of the massive empire.
The motion directs the Company to sell such solvent enterprises as soon as practicable. Protracted delays might have a substantial impact on their value.
Since FTX very recently bought the majority of these companies, they mostly ran independently of their parent company on a global scale. As a result, in contrast to some of the company’s other subsidiaries, their assets and finances continue to be kept apart from FTX.
FTX had already garnered more than 110 “unprompted” bids for the four firms, according to the court document. The corporation must now obtain the court’s approval before formally accepting the bids, which is anticipated to take place between February and March.
Aspiring buyers were required to submit a variety of paperwork by these dates that proved both their interest in and their qualification to bid on the companies up for auction.
The competence of bidders to obtain regulatory approval for the sales must also be confirmed.
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