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FTX Trading seeks approval to sell $175 million Genesis Global claim
By Sarah Lizee
Olympia, Wash., Feb. 2 – FTX Trading Ltd. is seeking approval of procedures to sell its allowed claim in the Genesis Global Holdco, LLC bankruptcy case, according to a motion filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.
On May 22, 2023, FTX filed proofs of claim totaling about $3.8 billion against the Genesis debtors. The next month, some of the Genesis debtors filed claims of at least $180 million plus additional unliquidated amounts against some of the FTX debtors, and Genesis’ non-debtor affiliate GGC International Ltd. also filed claims against some of the FTX debtors. GGC International also separately asserted claims against some of the FTX debtors of at least $176 million.
In August, the parties entered into a settlement agreement, through which FTX received an allowed general unsecured claim for debtor Alameda Research Ltd. against Genesis in the amount of $175 million.
The settlement agreement further provided that FTX may transfer the Genesis allowed claim in whole or in part, subject to some conditions.
Under the proposed sale procedures, FTX may pursue the sale of all or a portion of the Genesis allowed claim in one or a series of public auctions to a single purchaser or multiple purchasers.
FTX said it believes that flexibility with respect to the sale timing and process, including pre-approval of sales, is crucial to maximize the value of the genesis allowed claim and value to the FTX debtors’ estates.
And, given the size of the Genesis allowed claim held by FTX, the flexibility to sell portions of the claim at different times will help the debtors monetize their interest, FTX said.
A hearing is scheduled for Feb. 22.
FTX has headquarters in the Bahamas and filed Chapter 11 bankruptcy on Nov. 11, 2022 under case number 22-11068.
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