FTX Trading largest creditors have claims ranging from hundreds of millions to tens of millions of dollars, according to a recently filed court document.
FTX Trading LTD owes its top 50 creditors approximately $3 billion, according to a court document filed on Nov. 20. The document was filed as a part of the company’s Chapter 11 bankruptcy proceedings through the United States bankruptcy court for the district of Delaware.
According to this document, out of FTX’s alleged 1 million creditors, $226 million and $203 million respectively represent the two highest individual claims. These creditors are due a total of about $3.1 billion, but their names are not disclosed.
“The Top 50 List is based on the Debtors’ currently available creditor information, including customer information that was able to be viewed but is not otherwise accessible at this time,” the document, prepared by bankruptcy lawyers reads. “The Debtors’ investigation continues regarding the amounts listed, including payments that may have been made but are not yet reflected on the Debtors’ books and records. The Debtors are also working to obtain full access to customer data.”
FTX has hired Landis Rath & Cobb and Sullivan & Cromwell as its bankruptcy attorneys.
Sullivan & Cromwell is renowned for its bankruptcy work on Eastman Kodak and Nortel Networks. When Voyager Digital filed for bankruptcy earlier this year, the business was also hired to advise FTX on the acquisition of its assets, but it has subsequently taken down promotional materials from its website that indicated a partnership with FTX.
FTX Trying to Repair Damage So Far
On November 11, FTX filed for Chapter 11 bankruptcy as a result of its quick collapse. At that time, the business stated that Sam Bankman-Fried, the previous CEO, had left and that John Ray had been appointed to lead the company’s operations.
At that time, Ray said that the FTX Group should be given quick protection under Chapter 11 so that it has time to evaluate its condition and create a strategy to maximize recovery for stakeholders. The FTX Group has important assets that can only be managed profitably through a planned, collaborative approach. Since that original statement, it has been suggested in filings that FTX may have more than one million total creditors.