The defunct FTX Exchange has filed a court request seeking permission to sell some of its independent subsidiaries. The bankrupt firm stated in a Delaware Bankruptcy court filing that it is seeking offers for Embed Financial Technologies, LedgerX, FTX Japan, and FTX Europe.
According to the filing, FTX stated that it is seeking to sell its four subsidiaries to recover some funds to pay some of its creditors. FTX claims that these businesses have sound financial standing and possess independent management.
The defunct firm gave a number of reasons for selling its subsidiary firms. Firstly, FTX said the firms are experiencing regulatory pressures due to the fallout of the FTX exchange platform. FTX therefore, stated that it wishes to sell these businesses before these pressures affect the liquidity of the firms.
Secondly, FTX said the licenses of some businesses have been suspended. FTX, therefore, highlighted that the business license suspension may pose a risk to the value of the assets, and the likelihood of licenses being permanently revoked.
Additionally, FTX is of the opinion that the sale of the firms to a competent buyer could allow the businesses to carry on or resume operations, thus increasing the value of the businesses to FTX’s estates.
Bid for FTX Exchange’s Subsidiaries
The court filing stated that the firms have received quite a number of interest concerning sales since FTX filed for bankruptcy. FTX, therefore believes that more businesses will show interest if it conducts a broader marketing procedure and bidding process.
FTX has presently conducted bid and auction procedures to oversee the sales process, but there is yet to be a final decision concerning the sale of the businesses. It was also highlighted that any sale will be pending until approved by the court and independent directors of FTX.
Previously, Justin Sun, a Chinese Entrepreneur and founder of TRON was reported to be interested in acquiring assets from Sam Bankman-Fried’s troubled FTX platform. Sun said he was willing to give FTX a shot even though he said the process may take time because of the ongoing court proceedings.
LedgerX, one of the FTX derivatives firms that are open for sales also said it was going to inject cash into the FTX platform when the firm said it was filing for bankruptcy. Not much information has been gotten from the smaller firm since it made the announcement.
