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FTX’s $45M Sequoia Sale Cleared, as Embed Divestment Is Delayed
A Delaware bankruptcy judge approved the sale of the bankrupt company’s assets to Abu Dhabi’s investment arm.
Updated Mar 29, 2023, 2:48 p.m. Published Mar 29, 2023, 7:41 a.m.
A federal bankruptcy judge in Delaware has approved the $45 million sale of FTX’s assets in Sequoia Capital Fund to the investment arm of Abu Dhabi, a Tuesday court filing shows.
In a declaration requested by FTX on March 8, Judge John Dorsey declared the sale to Al Nawwar Investments RSC Limited met the requirements of U.S. bankruptcy law, which sets restrictions to prevent unduly hasty divestment of assets.
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The bankrupt company also requested an indefinite delay to its sale of stock-clearing business Embed, originally conceived as a quick way to raise funds for outstanding creditors.
The sale hearing for Embed, originally schedule for Feb. 27 and subsequently postponed, is now to be put on hold “until further notice,” a separate court document said, without providing further reasoning.
FTX filed for bankruptcy protection on Nov. 11 and now, under the management of restructuring expert John J. Ray III, has since been engaged in attempts to recoup missing customer funds, including selling assets such as derivatives arm LedgerX and the company’s European and Japanese units.
Read more: FTX Reaches $45M Deal to Sell Interest in Sequoia to Abu Dhabi's Investment Arm
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