FTX resumes salary payments to employees and contractors, except in Bahamas and Australia
“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.”
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, FTX Trading Ltd announced.
The bankrupt crypto exchange explained that 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.
FTX also paying selected non-U.S. vendors and service providers
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 firm added.
The relief applies only to employees or contractors of 101 affiliate entities – collectively FTX Debtors – and does not apply to employees or contractors of FTXDM Bahamas and FTX Australia.
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 Australia Pty Limited and FTX Express Pty Ltd – collectively FTX Australia – are the subject of a separate proceeding in Australia and not included in, or protected by, the chapter 11 cases in the United States.
“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”, said John J. Ray III, the new CEO of FTX, who is handling the Chapter 11 bankruptcy.
“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.”
