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After meeting with its US counterparts, the Australian administrator says understanding the data is a huge challenge.
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Local FTX creditors will need patience: KordaMentha
12 December 2022
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7 minute read
Local creditors eager for news following the collapse of US crypto outfit FTX will need patience because understanding the data is an “enormous task”, the administrator of FTX Australia says.
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KordaMentha partner Scott Langdon said the main objective was to inform Australian customers about their financial position and ensure they were part of the global decisions regarding FTX’s administration.
“Customers have told us that their financial position is critical,” he said. “I need to emphasise this is an incredibly complex matter that is going to take a significant amount of time to work through.”
Late last week in the US Mr Langdon met the restructuring team for the 102 FTX companies in bankruptcy — the FTX Debtors — to advocate on behalf of Australian creditors and discuss both the collapse and how they would share critical information.
“We believe we now have the process and relationships with the FTX Debtors in place to get the data we need as soon as reasonably possible to make sure the interests of nearly 30,000 customers of the Australian FTX companies are fairly represented in the Chapter 11 process,” Mr Langdon said.
“We face similar challenges in Australia as the FTX Debtors do globally, theirs being on a much bigger scale.
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“Both the KordaMentha team and the FTX Debtors are facing an enormous task and we all need to be as thorough and careful as possible.”
CEO and chief restructuring officer of the FTX Debtors John Ray III said: “We look forward to working collaboratively with the professionals conducting the voluntary administration process in Australia, as they discharge their duties to their important constituency.”
The parties agreed to regular meetings to share information so the administrators could monitor and advocate for Australian customers and have knowledge of the global situation.
FTX Australia Pty Ltd and FTX Express Pty Ltd were placed in voluntary administration on 11 November 2022. The administrations are being conducted concurrently, and the first creditors meeting for both entities was held on 1 December 2022.
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