FTX has begun a review of its global assets as part of the crypto exchange’s Chapter 11 bankruptcy protection proceedings with New York-based financial services firm Perella Weinberg Partners L.P. (PWP) engaged as its lead investment bank.
The PWP engagement is subject to approval by the court, FTX said in a statement today. If approved, PWP will spearhead the asset review of FTX.com and 101 affiliated companies, together considered to be the FTX debtors in the proceedings. This asset review could ultimately lead to the reorganization or sale of certain business interests held by FTX and its affiliated companies.
John J. Ray, the new FTX CEO, revealed that the asset review has been ongoing over the past week. “We are pleased to learn that many regulated or licensed subsidiaries of FTX, within and outside the United States, have solvent balance sheets, responsible management and valuable franchises,” Ray said.
Ray was appointed FTX CEO after the collapsed crypto exchange filed for bankruptcy. The new CEO tore into the previous FTX management under founder Sam Bankman-Fried shortly after taking over the firm. At the time, Ray criticized the previous leadership for what he called a “complete failure of corporate controls.” Ray’s comments were the latest in a long string of revelations about questionable dealings that went on in the crypto exchange and its sister firm Alameda Research.
For Ray and the new leadership, the stated goal is to preserve the value of franchise assets during this period. “It will be a priority of ours in the coming weeks to explore sales, recapitalizations or other strategic transactions with respect to these subsidiaries, and others that we identify as our work continues,” said Ray, while calling for patience from all concerned parties as the process unfolds.
Source: The Block