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FTX OK’d to sell SCHF Cayman interests to Liberty Mutual Investments
By Sarah Lizee
Olympia, Wash., June 28 – FTX Trading Ltd. secured approval to sell its interests in SCHF Cayman, LP to Liberty Mutual Investments Holdings LLC, according to an order filed Wednesday with the U.S. Bankruptcy Court for the Southern District of Delaware.
Prior to the petition date, prior management of the FTX group made investments through the debtors in several entities unrelated to the debtors’ exchange and digital asset business.
The investment in SCHF Cayman, a fund managed by SCHF (GPE), LLC, is one of these.
The debtors acquired the interests on July 1, 2022, with a total capital commitment of $100 million, only $25 million of which was funded as of the petition date.
The debtors’ capital commitment remains only partly funded, and the debtors are currently in default on $25 million of incremental funding commitments.
FTX said the investment is not readily liquid, and SCHF Cayman is designed as an evergreen fund and therefore has no guaranteed exit timing or other imminent monetization opportunity for the debtors.
The company looked to sell the interests to a buyer who could cure any outstanding default and fund the remaining capital commitments.
The purchase price includes $18.2 million in cash, plus the total amount of any capital contributions or any other amounts paid to SCHF Cayman in respect of the interests after Dec. 31, 2022 and on or prior to the June 30 closing date, minus the total amount of any distributions made to seller after Dec. 31, 2022 and on or prior to the closing date, plus the cure costs, if any, paid by FTX between the date of the agreement and the closing date.
FTX has headquarters in the Bahamas. The company filed Chapter 11 bankruptcy on Nov. 11, 2022 under case number 22-11068.
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