FTX collapses, resulting in a $3 billion worth of debt to 50 of its biggest creditors, according to a published document of its bankruptcy filing.
The document was filed by the FTX Trading LTD through the US bankruptcy court for the district of Delaware as part of the company's Chapter 11 proceedings, Coin Telegraph writes.
The Rapid Crash Of FTX Arrives With Its Newly Hired CEOz
FTX's bankruptcy document stated that it owes the top creditor alone about $226 million, and between $21 million and $203 million to other creditors.
The document also explained that the list of debtors is only based on the currently available creditor information accessible at the moment.
It also says that the investigation regarding amounts such as payments that may have been made but were not reflected in the books and records continues.
On November 11, the company filed for Chapter 11 bankruptcy, during a time when FTX had only hired a new CEO, John J. Ray III, after former CEO Sam Bankman-Fried resigned.
"The immediate relief of Chapter 11 is appropriate to provide the FTX Group the opportunity to assess its situation and develop a process to maximize recoveries for stakeholders," Ray says.
According to Coin Telegraph, the court filings following the initial announcement of company collapse have also alleged that FTX may have over 1 million total creditors.
Meanwhile, in a November 19 filing, the company found that the former CEO Bankman-Fried owes about $1.45 billion just between its top 10 creditors.
Because of this, The Street reports that investors are likely facing total losses in the collapse of the popular digital assets exchange valued at $32 billion in the past.
FTX CEO says that it plans to sell or reorganize its business, engaging with the Perella Weinberg Partners LP as its lead investment bank.
Furthermore, Ray notes that some FTX subsidiaries are solvent, which can be good for creditors who want to recover some of their financial assets.
FTX Plans To Sell FTX Japan As Part of Its Bankruptcy Solution
FTX was an exchange used by crypto investors for retail and institutional traders, which was backed by huge high profile venture capitalists, raising about $420 million hedge funds.
In its process to solve the problem of bankruptcy, the company is expected to sell FTX Japan as a prized part of the group, Nikkei Asia writes.
The move follows the parent company's strategic review of global assets in connection with the Chapter 11 bankruptcy protection filing in the US.
However, with the impending fall of FTX Trading LTD, Japan's Financial Services Agency has immediately issued a protective order for the company's assets in the country.
This order lets FTX Japan be acquired by a creditworthy buyer, as an anonymous senior FSA official said that its acquisition would result in an ideal solution for the whole of FTX Trading LTD.
According to The Street, a court hearing on the company's motions is scheduled for November 22, and will be presided over by a US bankruptcy judge.
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