FTX wants to sell four of its subsidiary companies

FTX’s breach filing in Delaware court indicates that the company wants to sell four of its subsidiary businesses. While the collapse of the exchange has had a cascading effect on several businesses, he wants to limit the damage. The rapid sale of Embed Financial Technologies, LedgerX, FTX Japan and FTX Europe may save them from FTX’s legal troubles. Especially since these subsidiaries still have value. If the court gives the green light, the sale procedure can begin at the beginning of the new year.

FTX wants to act, before it’s too late…

FTX subsidiaries are currently in danger from the collapse of the parent company. They risk losing value by being affiliated with the bad image of FTX. Affiliates Embed Financial Technologies, LedgerX, FTX Japan and FTX Europe are solvent. They are also in good standing with regulators, according to FTX. Lawyers representing FTX therefore began an auction process for these four companies. This decision was made before they lost any more value.

They thus filed a motion before the judge on Thursday evening. They believe that the longer operations are suspended, the greater the risk to asset values ​​and the risk of permanent license revocation.

The tender procedure is scheduled for 2023

The motion indicates that it is a priority to explore sales, recapitalizations or other strategic transactions concerning these subsidiaries. Indeed, LedgerX, acquired by FTX last year, is among the company’s few subsidiaries to remain liquid, as FTX and Alameda Research lost money.

The dates for the tender and sale approval process will not be the same for each branch. Nevertheless, preliminary offers are expected between mid-January and early February. Objections to the sale proposal are scheduled for December 29 with a hearing on January 11. After the auction, the Delaware Bankruptcy Court, presided over by John Dorsey, will hold hearings to approve the winning bids.

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