FTX starts strategic review of all assets
FTX has engaged US-based firm Perella Weinberg Partners LP as its lead investment bank to help with the sale or reorganisation of subsidiaries.
FTX Trading is set to review all of the bankrupt cryptocurrency exchange’s assets around the globe, the team handling the collapsed company’s bankruptcy process said Saturday.
According to a press release FTX.com and about 101 affiliate companies, collectively the “FTX Debtors”, are rolling out a strategic review of all of the collapsed company’s global assets.
FTX review shows some subsidiaries are solvent
The exercise is part of the broader Chapter 11 process, the companies noted in the announcement, with the objective being to maximise asset recovery and to offer as much value as possible to FTX stakeholders.
These were the sentiments of John J. Ray III, the new Chief Executive Officer of FTX.
Ray is a prominent bankruptcy lawyer who took over from Sam Bankman-Fried as CEO last week. He noted in a statement published Saturday that the review will take note of the fact that some of FTX’s subsidiaries are solvent.
“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,” Ray said.
As such, some affiliated companies like LedgerX, (which FTX acquired in 2021) and Embed Clearing, part of FTX’s acquisition spree in 2022, are not debtors. However, others like the Japanese crypto exchange Liquid and FTX Turkey are part of the bankruptcy cases as debtors.
FTX has engaged Perella Weinberg Partners LP as its lead investment bank as it looks to sell some businesses and reorganise others. FTX’s engagement with the investment banking advisor is, however, pending approval by the Court.