FTX Europe AG Files for Swiss Moratorium Proceeding Amidst Bankruptcy Proceedings
FTX Debtors Announce Petition for Moratorium as They Explore Strategic Alternatives
FTX Trading Ltd. (d.b.a. FTX.com) and its affiliated debtors (collectively referred to as the “FTX Debtors”) have made a significant move in their ongoing bankruptcy proceedings. FTX Europe AG, the holding company of the FTX European business, has filed a petition for a Swiss moratorium proceeding, which was granted by a Swiss court on April 11, 2023. This development comes as FTX Debtors continue to explore strategic alternatives, including the potential sale of their business as approved by the U.S. Bankruptcy Court.
Moratorium to Facilitate Strategic Alternatives
The Moratorium process is expected to facilitate the exploration of strategic alternatives for FTX Europe AG. This includes the previously disclosed potential sale of its business, which is subject to bidding procedures approved by the U.S. Bankruptcy Court. The Moratorium provides a temporary stay on the company’s debts and obligations, allowing FTX Europe AG to reassess its financial situation and consider various options for its future.
Not Affecting Customer Balances
Importantly, the Moratorium does not impact the previously announced process for confirming customer balances in preparation for allowing the withdrawal of funds from FTX EU Ltd. This means that customers’ funds held with FTX EU Ltd. are expected to be unaffected by the Moratorium and continue to be processed in accordance with the previously outlined procedures.
Appointment of Administrator
As part of the Moratorium, the Swiss court has appointed an administrator for FTX Europe AG. The administrator will oversee the company’s operations and financial affairs during the Moratorium process, with the goal of safeguarding the interests of all stakeholders involved.
FTX Europe AG’s Ongoing Bankruptcy Proceedings
It’s worth noting that FTX Europe AG is also a debtor in the Chapter 11 proceedings in Delaware. The filing for the Swiss moratorium proceeding is seen as a step towards addressing the company’s financial challenges and seeking potential solutions for its financial obligations.
FTX Debtors, including FTX Europe AG, have filed for a Swiss moratorium proceeding as part of their ongoing bankruptcy proceedings. The Moratorium is expected to facilitate the exploration of strategic alternatives for FTX Europe AG, including the potential sale of its business. Importantly, the previously announced process for confirming customer balances and allowing fund withdrawals remains unchanged. The appointment of an administrator by the Swiss court aims to safeguard the interests of all stakeholders during the Moratorium process. As FTX Debtors continue to navigate their financial challenges, the outcome of these proceedings will be closely watched by the cryptocurrency community and the financial industry at large.
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