FTX Resumes Employee and Contractor Payments After Weeks of Turmoil
FTX Trading Ltd., and approximately 101 additional affiliated companies (together, the “FTX Debtors”), announced that most FTX subsidiaries around the world are resuming ordinary course payment of salary and benefits to employees worldwide and ordinary course payments to certain non-U.S. contractors and service providers.
John J. Ray III, the new FTX CEO, said, “With the Court’s approval of our First Day motions and the work being done on global cash management, I am pleased that the FTX group is resuming ordinary course cash payments of salaries and benefits to our remaining employees around the world. FTX also is making cash payments to selected non-U.S. vendors and service providers where necessary to preserve business operations, subject to the limits approved by the Bankruptcy Court. We recognize the hardship imposed by the temporary interruption in these payments and thank all of our valuable employees and partners for their support.”
The relief includes cash payments with respect to both pre-petition and post-petition periods, subject to limits for payment of pre-petition amounts established by the orders of the Bankruptcy Court.
The FTX group will pay vendors and service providers in the ordinary course for all goods and services provided on or after the Chapter 11 filing date.
The relief applies in The Bahamas only to employees or contractors of the FTX Debtors, and not to employees or contractors of FTX Digital Markets Ltd. (“FTXDM Bahamas”).
FTXDM Bahamas is the subject of a separate liquidation proceeding in The Bahamas and not included in, or protected by, the chapter 11 cases in the United States.
The relief also does not apply to employees or contractors of FTX Australia Pty Limited and FTX Express Pty Ltd (collectively, “FTX Australia”), which is the subject of a separate proceeding in Australia and not included in, or protected by, the chapter 11 cases in the United States.
