FTX files for court relief to pay vendors, begins review of assets
Estimated 1 million customers and investors left with billions of dollars in losses after FTX filed for bankruptcy
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The collapsed crypto exchange FTX is preparing for the sale or reorganization of some businesses.
To do that, it has begun a strategic review of its global assets.
In addition, the company and about 101 affiliated firms, also filed a request for court relief to allow the operation of a new global cash management system and payment to its critical vendors.
FTX asked in a court filing on Saturday for permission to pay claims of up to $9.3 million to its critical vendors after an interim order and up to $17.5 million after the entry of the final order.
FILE PHOTO: The logo of FTX is seen at the entrance of the FTX Arena in Miami, Nov. 12, 2022. (REUTERS/Marco Bello/File Photo / Reuters Photos)
The exchange and its affiliates rocked the cryptocurrency world when they filed for bankruptcy in Delaware on Nov. 11.
It left an estimated 1 million customers and other investors facing total losses in the billions of dollars.
The exchange said that if it fails to receive the requested court relief, it will result in "immediate and irreparable harm" to its businesses.
Sam Bankman-Fried, founder and former chief executive officer of FTX (Ting Shen/Bloomberg via Getty Images/File / Getty Images)
FTX FOUNDER SAM BANKMAN-FRIED WAS ALSO PROLIFIC DONOR
"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," FTX's new Chief Executive Officer John Ray said.
Ray was appointed CEO of FTX shortly before the company filed for Chapter 11 bankruptcy and founder Sam Bankman-Fried resigned.
This illustration photo shows a smartphone screen displaying the FTX logo. (Olivier Douliery/AFP via Getty Images / Getty Images)
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The company has appointed Perella Weinberg Partners LP as its lead investment bank to help with the sale process, subject to court approval.
Reuters contributed to this report.