American court hearing recordings and interviews - Season 2. Episode 2. May 4, 2023. In re FTX Trading Ltd., et al., chapter 11 bankruptcy case number 22-11068, audio of hearing held in the FTX/Alameda et al. bankruptcy proceedings pending in Delaware, USA #crypto

Episode Date: May 5, 2023

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Be seated. Good afternoon, Your Honor. May it please the court, Kim Brown from Landis Rath and Cobb, appearing today on behalf of FTX Trading Limited and its associated debtors. Your Honor, we have two matters that are on the agenda today. The first is the debtor's motion for authority to sell the Ledger X business, and the second is a motion to seal certain information in the schedules attached to the interest purchase agreement for the Ledger X business.

Unless, Your Honor, has any questions on the agenda. I will turn the podium over to Mr. D. Trick will be handing the sale motion. Thank you. Good afternoon, Your Honor. Andy Dieterick, Sullivan, and Cromwell. Thank you, Your Honor, for accommodating us today. The objection deadline for the matters was the hearing today, but we are not aware of any objections. So I'm going to proceed, and then others, I guess, can speak if they have an objection.

So, Your Honor, we have the first matter, which is the motion to approve the sale to Ledger X. The sale of Ledger X. The evidentiary record for this, Your Honor, is for Declature. declarations and I'd like to move those into evidence now. The first is the declaration of John J. Ray at docket 1343. The second is the declaration of Bruce Mendelsohn at docket 1 344. The third is the declaration of Thomas Gallagher at docket 1 345 and the fourth is a supplemental declaration in Mr. Mendelso we put in last night at docket 1 414.

Senator, objection? Good afternoon, Your Honor. Jeff Sabin from Venable, as counsel for OKCUSA Holding Inc., a qualified bidder, and its affiliates. We have no objection to entry of the evidence. We also appear, first and foremost, to make clear to this Court and everybody here, that the OKC entities do not and will not object to the proposed sale. They will not object to entry of the proposed sale order, and they will take no action that otherwise objects to or interferes with closing of the transactions

contemplated by the proposed sale. However, I feel constrained in honor to tell you and to make a statement to everyone who's listening and to those in court that the OK entities reserve all of their rights to seek appropriate relief relating to certain statements may you. in Mr. Mendelssohn's supplemental declaration, docket 1414, late last night, concerning what they believe are misleading and or simply untrue statements concerning regulatory matters

related to the OKC entities. Those statements, in particular those in paragraph 12 of Mr. Mendelssohn's supplemental declaration, we believe are simply not true. as the okay entities at all times and in each of their submitted bids made clear their obligations and their willingness to comply with any CFTC or other governmental requirements

and to provide information and to cooperate in connection therewith. So with that, Your Honor, I hope this proceeding otherwise goes quickly. I hope the sale is approved and we simply reserve our rights and make clear why we did so. Thank you. All right, thank you, Mr. Saban.

Anyone else have an objection to entry of the declarations in the evidence? All right? The declarations are admitted without objection. Thank you, Your Honor. Your Honor, we also have a proper that the U.S. trustee has requested of the buyer, and I think Ms. Schweitzer is going to address that proper. All right. Ms. Weissue.

Good afternoon, Your Honor. My name is Lisa Schweitzer from Cleary Gottlieb, and counsel to M7 Holdings LLC, which is the proposed buyer of Villa directs assets, and I'm here to provide the following proffer at the request of the United States Trustees Office. I'm proffer as follows on behalf of Mr. Tom Gallagher, who is the chairman and CEO of M7 Holdings LLC, and who Your Honor saw put a declaration into evidence in the court. The proffer is that if called to the stand, Mr. Gallagher would testify, the buyer would not have entered into the purchase agreement if the sale of the ledger x business were not made free and clear of any successor liability of buyer and further the buyer would not have entered into the purchase agreement if the sale of the ledger ex business did not include the sale and conveyance of the acquired claims and the coverage claims by the debtors that's the end of the proffer

thank you so any objection to the entry of the proffer into the record to admit it without objection thank you your honor thank you mr. Your Honor, Andy Dieter, for the record. Your Honor, I'd like to give you an opportunity if you'd like to ask any questions that you have about the sale contract or the order or anything else. But I think that's the rest of my business. I've read the papers. I'm satisfied. I've read all the declarations as well. Excellent. Well, Your Honor, then I'd like to move for approval of the order.

Okay. Anyone wish to be heard? Satisfied the entry of the order is appropriate. I will enter the order. Thank you, Your Honor. The second item on the docket today is the sealing order. I think we'd like to move for entry of that as well. Anyone wish to be heard on the seal order.

Okay. I'm satisfied the request that relief is appropriate as well. I want to that order. Thank you, Your Honor. That's all we have for today. Well, that was easy. It won't always be so. We should enjoy it.

Yes, absolutely. All right. Well, thank you all very much. We are adjourned. Thank you, Your Honor. You've finally broken loose from work. Three friends, one tea time, and then the text. there's water in the basement.

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