This is Matt Reustle. Today we are releasing a bonus episode of Breakdowns. While we typically love to cover businesses, this was an interesting opportunity to cover a special situation around a business. And in this case, the FTX bankruptcy.
I was joined by Erin Broderick, Head of U.S. Cross-Border Restructuring & Insolvency at Eversheds Sutherland. Erin represents the Ad Hoc Committee of Non-U.S. customers for FTX, giving her a front-row and hands-on seat to everything that’s unfolded at FTX since they entered Chapter 11 in November of 2022. We cover the basics around bankruptcy proceedings, using FTX as a lens in comparison to other restructurings. Please enjoy this bankruptcy breakdown on FTX.
Show Notes
(00:00:00) Welcome to Business Breakdowns
(00:03:31) First Question – Understanding Bankruptcy Proceedings
(00:04:15) The FTX Bankruptcy Case
(00:05:19) The Role of Chapter 11 and Chapter 7 in Bankruptcy
(00:05:52) The Challenges of Restructuring FTX
(00:08:18) The Role of Customers in the FTX Case
(00:12:16) Complexities of Tracing and Identifying Assets
(00:22:10) The Role of Secondary Hedge Funds
(00:27:05) The Issue of Dollarization of Claims
(00:32:35) The Process of Uncovering Assets
(00:36:39) Proposed Recovery Plan for FTX
(00:45:21) Upcoming Timeline For FTX To Exit Bankruptcy