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FTX to file for U.S. bankruptcy, CEO resigns

reuters.com

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Re: FTX to file for U.S. bankruptcy, CEO resigns

#371

Post by georgemcbay »

indigodaddy wrote: post #332

Dumb question, but what happens to stuff like Miami Heat’s FTX Arena etc in situations like this? Should we expect a name change for the arena at some point soon?

The company probably has the yearly naming rights fee cut into payments. When they miss their next payment, their name will be removed from the arena.

This happened to Adelphia with the Tennessee Titan's arena in 2002. In that situation the stadium was renamed to a generic "The Colosseum" for a few years because they had trouble finding a new naming partner. I suspect they'll have an easier time finding a replacement in this case, but who knows.

Re: FTX to file for U.S. bankruptcy, CEO resigns

#372

Post by ftx_no_name »

avrionov wrote: post #360
ftx_no_name wrote: post #275

I'm one of customers that have money on FTX international which I cannot withdraw. (yup i know. bad decisions etc, but i knew the risk). Do you guys know, what will happen with the funds? Will I as a customer get any of my money back? (do you know if I'm a secured creditor?)

I'm sorry to hear that. You should look at Celsius as an example what happen next. They are further down on the bankruptcy. https://www.reddit.com/r/CelsiusNetwork/

Thank you!

Re: FTX to file for U.S. bankruptcy, CEO resigns

#373

Post by mi_lk »

kebman wrote: post #271
tppiotrowski wrote: post #268

I still can't reconcile how fast this happened. Back in April SBF was willing to give billions to buy Twitter. It seemed like there was plenty of surplus or was the money he planned to invest just FTX customer holdings? "Musk responded to the text by asking if Bankman-Fried had “huge amounts of money?” MacAskill said SBF was worth about US$24 billion at the time and could be willing to provide as much as US$8 billion…

Ah, the magic of loaned funds with little or no demands tied to it. And you wonder why real estate prices are so high? It's largely the same principle, except the regulation is way, wayyy tighter. But in sum, the effect it has on markets is unquestionable.

> loaned funds with little or no demands tied to it

What does it mean for funds tying to demands?

Re: FTX to file for U.S. bankruptcy, CEO resigns

#374

Post by anon291 »

hotpotamus wrote: post #367
anon291 wrote: post #350

Earlier quoted context omitted.

Good point. That must mean democrats can do no wrong. /s This sort of non sequitur is dangerous to democracy.

You might notice that I didn't say that. But I am skeptical that the party that has branded itself as the anti-regulation party for my entire life is really going to embrace regulation all of a sudden in response to the malfeasance of someone they perceive as being a political enemy.

> embrace regulation all of a sudden in response to the malfeasance of someone they perceive as being a political enemy.

Given the GOP's willingness to strong-arm twitter and facebook (remember Trump tried to have it investigated by the DoJ), I feel like regulating companies due to being a political enemy is exactly what I'd expect the GOP to do. Perhaps it's the one time you can be sure they'll start regulating.

From my perspective, the democratic party is constantly talking about how bad Citizens United is (and I am very sympathetic to that) while taking millions upon millions from large companies and wealthy individuals.

Re: FTX to file for U.S. bankruptcy, CEO resigns

#375

Post by sgt101 »

theideaofcoffee wrote: post #346
indigodaddy wrote: post #332

Dumb question, but what happens to stuff like Miami Heat’s FTX Arena etc in situations like this? Should we expect a name change for the arena at some point soon?

I also think this is an interesting question. Coming from a lay person I'd imagine it would remain with that name until the contract is up for renewal. Depending on how the naming deal was structured, the money to do the deal would probably have come from FTX' marketing budget in a lump sum up front (presumably) for a fixed number of years. When that's done, the arena will find another source of funds and give the ri…

The administrators / bankruptcy courts will try and do a deal with the stadium. Something like "we can auction the rights again and we will keep 90% of what we get for them, you can have 10%, so you are 10% up, for nothing"

Re: FTX to file for U.S. bankruptcy, CEO resigns

#376

Post by tonetheman »

boc wrote: post #341
memish wrote: post #322

Earlier quoted context omitted.

Here's another guy that was vouching for SBF to get in on the Twitter deal for $5b. Michael Grimes [IBanker at Morgan Stanley]: Do you have 5 minutes to connect on possible meeting tomorrow I believe you will want to take? Elon: Will call in about half an hour Michael: Sam Bankman Fried is why I'm calling https://twitter.com/sbf_ftx/status/1514588820641128452 https://www.vox.com/platform/amp/recode/2021/3/20/22335209…

I'm cackling at idea that even Elon is tired of hearing about the blockchain from crypto nerds... even the ones offering him billions.

everyone is

Re: FTX to file for U.S. bankruptcy, CEO resigns

#377

Post by ucha »

guelo wrote: post #37

Why are they filing in the US? I thought they were Bahamas or Hong Kong besides ftx.us

None of the answers you received so far are correct.

The holding company of the foreign entity is in the US and can thus file for ch11. See who owns FTX Trading Ltd (Antigua) for example: https://d1e00ek4ebabms.cloudfront.net/production/8566b562-d5...

Re: FTX to file for U.S. bankruptcy, CEO resigns

#378

Post by function_seven »

enkid wrote: post #362
function_seven wrote: post #354

Earlier quoted context omitted.

If there's time left on the deal, but the arena would rather not keep the stinky association, can't they sell a new naming rights deal today, and send a portion of the new proceeds from that to FTX? In a way it would be another asset for the bankruptcy liquidator to disperse.

Alternatively, can FTX sell the naming rights (with the approval of the arena)

Yeah that makes more sense. They have the asset (rights through 2040). Would be pretty funny if it turns out that these naming rights are the single most valuable asset they own today.

I just looked up a similar situation from 20 years ago[0,1].

[0] https://www.nytimes.com/2002/02/28/sports/baseball-astros-ba...

[1] https://www.wsj.com/articles/SB1014832920627596080

Re: FTX to file for U.S. bankruptcy, CEO resigns

#379

Post by __derek__ »

ftx_no_name wrote: post #275

I'm one of customers that have money on FTX international which I cannot withdraw. (yup i know. bad decisions etc, but i knew the risk). Do you guys know, what will happen with the funds? Will I as a customer get any of my money back? (do you know if I'm a secured creditor?)

You're an unsecured creditor. It's obviously an open question whether you'll be able to recover any funds.

Re: FTX to file for U.S. bankruptcy, CEO resigns

#380

Post by nu11ptr »

EVa5I7bHFq9mnYK wrote: post #334
memish wrote: post #322

Earlier quoted context omitted.

Here's another guy that was vouching for SBF to get in on the Twitter deal for $5b. Michael Grimes [IBanker at Morgan Stanley]: Do you have 5 minutes to connect on possible meeting tomorrow I believe you will want to take? Elon: Will call in about half an hour Michael: Sam Bankman Fried is why I'm calling https://twitter.com/sbf_ftx/status/1514588820641128452 https://www.vox.com/platform/amp/recode/2021/3/20/22335209…

Interesting, the banker thinks "Major Democratic donor" is a positive selling point for Musk. I thought he is red.

Elon isn't red or blue. He has leaned to voting dem in the past and now leans to voting gop for various reasons. It could change tomorrow. In the end, he thinks what he thinks and doesn't care how it aligns to a "party".
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