FTX Wants Dubai Subsidiary Out of U.S. Bankruptcy Proceedings

Odaily Planet Daily News According to court documents on Thursday, FTX hopes to exclude its Dubai subsidiary from the bankruptcy liquidation process in the United States. When FTX filed for bankruptcy in the United States last November, it had initiated Chapter 11 bankruptcy proceedings for 102 affiliated entities around the world. Founded in February 2022, FTX Dubai is owned by the company’s European subsidiary and is one of the entities involved in the lawsuit. But the FTX insolvency entity argued in the filing that FTX Dubai had not carried on any business prior to filing for bankruptcy in the United Arab Emirates (UAE), and therefore had “no reasonable possibility of resuming operations.” “Furthermore, FTX Dubai’s balance sheet is solvent. Accordingly, the Debtors believe that a solvent voluntary liquidation proceeding under the laws of the United Arab Emirates will allow for the timely distribution of all outstanding debts and liquidation of all assets. cash balance." The FTX insolvency entity argued that any court order during FTX Dubai’s involvement in the proceedings should stand, but that the dismissal was “necessary” to protect debtors and authorize them to pay pre-bankruptcy wages and salaries and other compensation, benefits and expenses To Dubai employees. A related hearing is scheduled for August 23. (CoinDesk)