FTX gets approval to pay critical vendors, can redact creditors’ and customers’ list

Hull Invest

A bankruptcy court for the District of Delaware has granted FTX approval to all first-day motions involving payments of up to $8.5 million to key vendors, court filings dated Nov. 23 show.

FTX can pay important vendors

The failed exchange was entitled to pay up to $8.5 million to key vendors with the approval of Chief Executive John Ray III, according to court filings. .

The court also granted troubled exchanges the right to pay claims against foreign vendors up to $1 million.

The bankrupt company initially sought approval from all significant vendors to pay up to $9.3 million in interim orders and up to $17.5 million in final orders. However, the court only granted the right to make payments not exceeding $8.5 million.

According to FTX filings, key vendors offer products and services that are critical to the exchange’s operation.

FTX considers several factors, including whether these services are available from alternative sources, the consequences of failing to pay vendors, and the location and nationality of these vendors.

A bewildered exchange wrote:

“Without authority to pay critical vendors, debtors may face irreversible security risks, potential data loss or other disruptions, and ultimately loss of property value.” thinking about.”

FTX compiles creditor list

In addition to payment authorization, the court too Licensed FTX To maintain a consolidated list of creditors. The company can also redact confidential information about its customers and creditors.

Several media reports have revealed that FTX owes creditors more than $3 billion. The company owes his $226 million debt to its largest creditor, and his $203 million debt to its second largest unsecured creditor.

However, it added that the court could order the company to publish some or all of the redacted information if there is good cause.

Meanwhile, Bahamas regulators also agreed to consolidate all bankruptcy proceedings into Delaware.

FTX CEO suggests company assets could be sold

CEO John J. Ray III discussing development Said:

“With court approval of our day one motion, we are moving forward as quickly as possible in an effort to maximize value for all FTX stakeholders.”

He added that some buyers have already expressed interest in the company’s assets and there is an orderly process in place to sell or restructure FTX assets.

Tron founder Justin Sun and cryptocurrency payments firm Ripple have hinted that they may be interested in buying FTX assets.

FTX has appointed Perella Weinberg Partners LP to advise on the sales process.

Posted In: FTX, Bankruptcy

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