Business Breakdowns
Episode 153 FTX: Inside the Restructuring
Business Breakdowns

Episode 153: FTX: Inside the Restructuring

Business Breakdowns

Episode 153

FTX: Inside the Restructuring

Erin Broderick is a restructuring and insolvency specialist at Eversheds Sutherland. We cover the basics of typical bankruptcy proceedings, why the number of parties involved makes the FTX case unique, and what some possible scenarios for recovery look like.

This episode is brought to you by:
Tegus.
 Tegus, the only investment research platform built for fundamental investors. How hard do you work to get the insights you need to make a great investment decision? How many hours do you spend digging through public records and expert transcripts, or manually updating complex models? Investors should compete on their ability to analyze investments, not how well they aggregate data. That’s why Tegus offers a unified, end-to-end research platform that combines robust qualitative content sets, up-to-date financial data, management and culture checks, and more — all in the same easy-to-use, streamlined user experience. 95% of the top 20 global private equity firms use Tegus. Shouldn’t you? Learn more and get your free trial at tegus.com/patrick.

 

(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

 

FTX: Inside the Restructuring

Introduction

Matt
This is Matt Reustle, and we are releasing a bonus episode of Breakdowns today. While we typically love to cover businesses, we thought 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, and Erin represents the Ad Hoc Committee of Non-U.S. customers for FTX.

So that's given her a front-row seat and a hands-on seat to everything that's unfolded at FTX since they entered Chapter 11 in November of 2022. We tried to cover some of the basics around bankruptcy proceedings using FTX as a lens to compare to other restructurings, and Erin helped explain what the key negotiating points have been in this particular case. We'd love your feedback on this episode. So if you're listening on Spotify, drop us a response there or you can respond to any of our social media accounts linked in the show notes of this episode. Now on to the conversation with Erin on FTX.

Access the full transcript
Sign in or register to view episode transcripts.

Contact

Get in touch at help@joincollossus.com