Cryptocurrency trading firm Auros Global, which was reportedly at risk in the FTX collapse, has released a statement saying it plans to resume regular operations after implementing a restructuring plan.
Auros’ statement on recent media tips – pic.twitter.com/9RFHhYjHqz
— Auros (@Auros_global) December 20, 2022
Following FTX’s collapse, the cryptocurrency trading firm said it was “in a position where immediate liquidity was insufficient to satisfy lender callbacks.” However, top management remained confident it would weather the storm caused by the FTX contagion.
In the released statement, Auros also announced that it has applied for a type of restructuring program that will allow the current management team to continue to act in the capacity of “authorized managers” under the supervision of an external consulting firm while a restructuring plan is being formulated.
The cryptocurrency trading company expects operations to return to normal once the restructuring plan is fully implemented.
The company also noted that it has applied for the “light touch” Provisional Liquidation Order, which typically comes into effect when companies are “financially solvent” but “cash flow insolvent.” As a result, the company’s liquidity problems can be solved quickly and effectively by restructuring the company.
Related: BlockFi requests to return frozen cryptos to wallet users
On Dec. 1, Cointelegraph reported that Auros Global missed a principal return on a 2,400 Wrapped Ether (wETH) DeFi loan due to FTX contagion. Institutional credit insurer M11 Credit, which manages liquidity pools at Maple Finance, said in a November 30 Twitter thread that the Auros had missed a principal payment on the 2,400 wETH loan, which has a total value of around $3 million had.
Auros Global is among a growing list of companies facing challenges following the collapse of FTX. FTX filed for Chapter 11 bankruptcy on November 11, along with several other companies run by Sam Bankman Fried.
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