Reports said that lawyers representing FTX are seeking permission from a US bankruptcy court to sell off the firm's Japanese and European branches, derivatives exchange LedgerX and stock-clearing platform Embed.
The lawyers note in their December 15 filing that each of these businesses has been under pressure from regulators, which “merit[s] an expeditious sale process,” adding:
“The longer operations are suspended, the greater the risk to the value of the assets and the risk of a permanent revocation of licenses.”
It has been reported that FTX Japan is currently subject to business suspension and improvement orders, while FTX Europe has had its licenses and operations suspended. They also point to the loss of customers and employees the businesses have experienced since FTX filed for bankruptcy on November 11, and believe selling these businesses now would allow the resumption of operations and therefore maximize value to the FTX estate.
However, the lawyers said these businesses were recently acquired and have been operating relatively independently of FTX, which would make a potential sale process much less complex. Assuming there is more than one potential bidder, the auctions for the businesses would start with Embed on February 21, with the other three occurring the following month.
The report said that more than 110 parties are said to be interested in purchasing one or more of the 134 companies included in the bankruptcy proceedings, and FTX has already entered into 26 confidentiality agreements with counterparties interested in the businesses or assets of FTX.
LedgerX in particular has been hailed as a success story during the bankruptcy proceedings of FTX, with Commodity Futures Trading Commission Chairman Rostin Behnam noting that the firm had essentially been “walled off” from other companies within FTX Group, and “held more cash than all the other FTX debtor entities combined.”
Thus, FTX wants to sell off parts of its failed crypto empire before they lose too much value or have their licenses permanently revoked, arguing that the sales would be in the best interests of all stakeholders.
Source: Cointelegraph
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