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Yesterday, the collapse crypto exchange FTX filed a new motion to the Bankruptcy Court of Delaware to approve bidding procedures for four of the firm’s independent solvent subsidiaries.
The sale of the subsidiary businesses is an attempt to generate money to repay its creditors, to which the company owes billions of dollars.
Bankrupt businesses must obtain permission from the court if the sale of assets is outside the ordinary course of business. According to the filing, FTX wants to sell Embed Technologies, LedgerX LLC, FTX Japan, and FTX Europe over the next two months.
The motion is scheduled for hearing on January 11, 2023, with an objection deadline of December 29, 2022.
The filing also pointed out that the company has already received “dozens of unsolicited bids.” Still, the bidding cannot begin without the court’s approval.
According to the motion, the company must sell these solvent businesses as soon as possible. Prolonged delays can affect their valuation significantly.
“The licenses held by FTX Europe have been suspended, and FTX Japan is subjected to suspension,” read the motion. “The longer operations are suspended, the greater the risk to the value of assets and the risk of permanent revocation of licenses.”
Which FTX firms are for sale?
Embed Technologies operates a clearing and custody platform for broker-dealers and financial institutions. It’s also FINRA registered broker-dealer regulated by the U.S. SEC.
The bidding for Embed Technologies ends on January 18, 2023.
FTX also hopes to sell 100% of its interests in LedgerX, the derivatives exchange regulated by the CFTC, with a bidding deadline of January 25, 2023.
FTX Japan Holdings owns two other subsidiaries, FTX Japan and FTX Singapore.
FTX Singapore (previously called Quoine Pte Ltd.) operates a cryptocurrency exchange under the exemption, with its application under progress with the Monetary Authority of Singapore (MAS).
According to the petition, “FTX is soliciting bids for a sale of 100% interest in FTX Japan Holdings or separate sales of 100% interest in FTX Japan and FTX Singapore.”
Lastly, FTX Europe, the Swiss corporation offering crypto and equity derivatives trading for EU institutional and retail investors, is also expecting bids by February 1, 2023.