FTX Trading said it has started a strategic review of the group’s global assets after it and 101 affiliated companies, together called FTX Debtors, filed for Chapter 11 bankruptcy, according to a PRNewswire release on Nov. 19.
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Fast facts
- John J. Ray III, FTX’s new CEO, said the review aims to maximize recoverable value for stakeholders.
- Ray added the review over the past week showed many regulated or licensed subsidiaries of FTX, within and outside of the United States, had solvent balance sheets, responsible management and valuable franchises.
- The group will be exploring sales, recapitalizations or other strategic transactions with respect to its subsidiaries.
- Perella Weinberg Partners LP (PWP) has been appointed as lead investment bank as the group commences preparation of certain businesses for sale or reorganization. The engagement of PWP will be subject to court approval.
- FTX Debtors filed for interim relief from U.S. Bankruptcy Court which, if granted, would allow the operation of a new global cash management system and payments of critical vendors and vendors at foreign subsidiaries. A hearing has been scheduled for Tuesday, Nov. 22.
- No specific timetable has been set for completion of this process and FTX Debtors has appointed risk advisory Kroll as its claims agent.
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