1. FTX debtors, the creditors committee, and the Bahamas Team have objected to the US Trustee’s motion for an independent examiner citing unwarrented cost.
2. The Department of Justice’s U.S. Trustee overseeing FTX’s bankruptcy case requested the court to initiate an independent probe in early December.
3. FTX lawyers have argued that an independent examiner could cost the bankrupt company up to $100 million and provide no unique content than the newly appointed CEO John J. Ray III.
The recent FTX bankruptcy case has garnered the attention of several U.S. lawmakers, states, and regulatory agencies. In early December, the Department of Justice’s U.S. Trustee overseeing FTX’s bankruptcy case requested the court to initiate an independent probe into the matter, calling the FTX implosion the fastest big corporate failure in American history.
However, FTX lawyers objected to the formation of an independent examiner citing unwarrented cost. According to the lawyers, an independent examiner could cost the bankrupt company up to $100 million and provide no unique content than the newly appointed CEO John J. Ray III. In a hearing, the lawyers implied that the cost would not provide the much-needed answer to creditors who have lost billions in the FTX scuffle.
In response, FTX debtors, the creditors committee, and the Bahamas Team filed three objections to the US Trustee’s motion for an independent examiner. The cooperation between the Task Force members appears to be high, with lawyers billing $2165 an hour making the argument that an Examiner’s costs would be wasteful to the estate.
It is still unclear how this case will be resolved, but it is evident that the parties involved are using their best efforts to ensure that creditors are made whole. Time will tell whether FTX debtors will be able to successfully oppose the formation of an independent examiner, or if the U.S. Trustee’s motion will proceed.