FTX: Inside the Restructuring - [Business Breakdowns, EP.153]

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. 

For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.

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Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com).

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