While noting that it has resumed its salaries for employees and certain foreign contractors, FTX said on Monday that payments will not apply to employees or contractors of Bahamas-based FTX Digital Markets.
“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 CEO John J. Ray III said in a release.
“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.”
FTX said the relief includes cash payments with respect to both pre-petition and post-petition periods, which are subject to limits for payment of pre-petition amounts established by the orders of the bankruptcy court.
It said 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),” the company said.
“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.”
FTX said the relief will also not apply to employees or contractors of FTX Australia Pty Limited and FTX Express Pty Ltd, which are collectively FTX Australia.
It said FTX Australia is the subject of a separate proceeding in Australia and not included in, or protected by, the Chapter 11 case in the United States.
After facing a liquidity crisis earlier this month, the Securities Commission of The Bahamas (SCB) froze the assets of FTX and put the company into liquidation.
The next day, then-CEO Sam Bankman-Fried announced that FTX and over 100 affiliate companies had filed for Chapter 11 bankruptcy protection in the US and that he stepped down as CEO.
FTX’s Bahamas-based company was not a part of that filing.
The joint provisional liquidators appointed to oversee the winding up of FTX in The Bahamas said they never authorized anyone at FTX to file for Chapter 11.
