VOT Research Desk
As FTX is coping with its Senate hearing on the one hand, its management is attempting to sell some of its assets on the other.
The now-bankrupt cryptocurrency exchange is attempting to squeeze every last drop of value out of some of its operating divisions, including Ledger X, its derivatives arm for the United States.
On December 15, FTX submitted a petition to the Delaware Bankruptcy Court seeking approval to sell some of its subsidiaries. LedgerX, Embed Financial Technologies, its foreign subsidiaries FTX Japan and FTX Europe, and others are among them.
The filing stated, according to their preliminary investigation, the Debtors hold or have control over several subsidiaries and assets that are subject to regulation, have licences, or are largely unrelated to their business operations both inside and outside the United States. within the United States.
Many of these companies, in the debtors’ opinion, have healthy financial sheets, independent management, and valuable franchises.
Since most of these businesses were acquired, they do not directly rely on FTX for their day-to-day operations, which keeps their funds and assets distinct from the parent company.
However, even these businesses have filed for bankruptcy because of their dependence on FTX, according to current CEO John Ray’s statement at the congressional hearing. FTX stated that it had received more than 100 bids for these companies at the time of filing.
The proposals made in the bids vary and could contain only one of these businesses or more.
In exchange, the sale of these units would benefit FTX’s creditors and permit the exchange in an effort to reduce some of its liabilities, according to the document, There is a legitimate business reason for selling a debtor’s assets outside of normal business operations when doing so will maximize and protect the estate’s value for the benefit of creditors and interest holders.
