Bankruptcy Judge Approves Sale of Four Key FTX Business Divisions
The bankruptcy judge allowed FTX to sell four key business divisions, including LedgerX, Embed, and two of its regional subsidiaries.
The new team at FTX led by John J. Ray III might have achieved a major milestone to repay the creditors and customers of the FTX group. John Ray III evidently has over 40 years of legal and restructuring experience and was assigned the position of CEO to restructure the firm after it filed for bankruptcy in November.
FTX Granted Permission to Sell Four Business Divisions
The exchange asked permission from the court to sell four of its key businesses, including FTX Europe, FTX Japan, future and options platform LedgerX, and a stock-clearing platform Embed.
Eventually, bankruptcy Judge Dorsey granted permission to FTX on Thursday to sell these businesses, according to a recent filing. The investment bank Perella Weinberg will take charge of this sale. The funds raised will be used to repay the creditors and customers.
Furthermore, the court has ordered that the deadlines to receive bids from the interested parties should be between Jan. 18 to Feb. 1, 2023.
117 Parties Interested to Purchase the Businesses Units
Perella Weinberg has mentioned in a previous court document that 117 parties, including various financial and strategic counterparties globally, have expressed interest in a potential purchase of one or more of the FTX Businesses.
50 parties are interested in acquiring Embed, and 56 have shown interest in LedgerX. The local subsidiaries of the exchange, FTX Europe, have attracted interest from 40 parties, while 41 parties have expressed interest in FTX Japan. The now-bankrupt company entered 59 confidentiality agreements with some of these parties.
Meanwhile, the demised exchange has recovered nearly $5 billion worth of crypto. The community fears the impact on the market if FTX liquidates this crypto.
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BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.