According to FTX's new CEO, most of its subsidiaries are Solvent.
The majority of FTX's regulated or licensed subsidiaries, both inside and outside the US, have solvent balance sheets, according to the CEO of FTX.
John J. Ray, III, the CEO of FTX, published a strategic review report on the company's global assets. After declaring bankruptcy under Chapter 11, FTX aims to maximize reclaimable value for stakeholders.
According to the reports, today saw the start of a strategic review of the different asset classes for FTX Trading Ltd. (d.b.a. FTX.com) and roughly 101 additional affiliated companies (collectively, the "FTX Debtors").
The CEO of FTX expressed his happiness and emphasized that the majority of FTX's regulated or licensed subsidiaries, both inside and outside the United States, have good financial standings, capable management, and valuable franchises.
LedgerX LLC and Embed Clearing LLC, two FTX subsidiaries, were also mentioned as not being debtors in chapter 11 cases. The list of insolvent subsidiaries for FTX, which includes FTX Japan KK, Quoine Pte Ltd, FTX Turkey Teknoloji Ve Ticaret A., FTX EU Ltd, FTX Exchange FZE, and Zubr Exchange Ltd, was also highlighted by the company's new CEO.
Other subsidiaries are debtors, including FTX Turkey Teknoloji Ve Ticaret A.., FTX EU Ltd., FTX Exchange FZE, and Zubr Exchange Ltd. He added, “It will be our priority in the coming weeks to explore sales, recapitalization, or other strategic transactions concerning these subsidiaries and others we identify as our work continues...”
The new CEO of FTX also made sure that the FTX Debtors team prioritizes the preservation of franchise value. In addition, he urged everyone involved in the government, including regulators, customers, vendors, and employees, to be patient with FTX.
Notably, the FTX Debtors submitted several motions to the Bankruptcy Court today asking for temporary relief that, if granted, would permit the operation of a new global cash management system and the regular payment of critical vendors and vendors at foreign subsidiaries.
They set the court date for the hearing on November 22nd, 2022. The group has not established a deadline for this process and does not plan to share any new information unless it determines that doing so is appropriate or necessary.
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