CEFI

Only three bidders left! FTX relaunch progress update, buyers expected to be finalized by the end of January next year

share
Only three bidders left! FTX relaunch progress update, buyers expected to be finalized by the end of January next year

After the confirmation of FTX's restructuring plan in May this year, the reorganized team once revealed that there were 75 potential bidders. However, according to Sunil, a well-known creditor of FTX, the number of bidders has significantly reduced to only 3. The stalking horse bid by the pseudo-horse bidder is expected to start on 10/16.

FTX 2.0 Launches!

According to reports in early August, the FTX restructuring team has been in discussions with multiple companies for potential collaborations to relaunch the FTX exchange. At that time, the bankrupt FTX team mentioned the possibility of partnering with third-party investors to establish a new company outside the U.S. jurisdiction, either by restarting or launching a new offshore platform that U.S. users cannot access, and did not rule out the possibility of conducting this transaction through a "merger."

In court documents filed in September, FTX revealed that since May 2023, the FTX restructuring team has contacted over 75 potential bidders to consider various potential structures, including acquisitions, mergers, capital restructuring, or other transactions to restart FTX.com and/or the FTX US exchange.

Full Report: Is FTX Relaunching? Contacted Over 75 Potential Bidders, FTX 2.0 Bidding to End on September 24

Progress of FTX Relaunch, Three Potential Bidders Identified

Yesterday evening, the FTX Creditors Alliance discovered new progress in the FTX relaunch plan after reviewing FTX CEO John Ray's September payroll. After the second round of bidding, there are currently only three creditors remaining, and the stalking horse bid is expected to begin on 10/16.

Note: A stalking horse bid refers to a buyer selected by a company applying for bankruptcy protection, who proposes an initial public bid acquisition price, with the aim of maximizing the value of the bankrupt company's assets or avoiding lower bids.

In addition, prominent FTX creditor Sunil announced today on the predecessor of X Twitter the known FTX bidding schedule, but the actual timing may be delayed by 1-2 months, details as follows:

  • Bidders: 3 bidders participating in the auction
  • Stalking Horse Bid: 10/16 – 10/23
  • Auction: 11/23 – 12/23
  • Auction Winner Announcement: 12/23 – 1/24

The schedule is for reference only, official updates are pending.