Cryptocurrency trading firm Auros Global, which allegedly suffered a $20 million exposure in the FTX collapse, has released a statement saying it plans to resume regular operations after implementing a restructuring plan.
Statement from Auros regarding recent references in the media – pic.twitter.com/9RFHhYjHqz
— Auros (@Auros_global) December 20, 2022
Following the collapse of FTX, the cryptocurrency trading firm shared that it “found itself in a position where immediate liquidity was insufficient to meet lenders’ requests.” However, its management leadership continued to trust that they could weather the storm caused by the FTX contagion.
In the statement issued, Auros also disclosed that it requested a sort of restructuring program that allows the current management team to continue to operate as “Authorized Managers” under the supervision of an external advisory firm, while a restructuring plan is formulated.
The cryptocurrency trading company anticipates that operations will return to normal once the restructuring plan has been fully implemented.
The company also highlighted that it requested the “light touch” Provisional Liquidation order, which is usually implemented when companies are “balance sheet solvents” but “cash flow insolvents.” This makes it possible to quickly and efficiently solve the company’s treasury insolvency problems through a corporate restructuring.
On December 1, Cointelegraph reported that Auros Global defaulted on a principal payment on a 2,400 Wrapped Ether (wETH) DeFi loan due to FTX contagion.. Institutional credit underwriter M11 Credit, which manages liquidity pools at Maple Finance, shared in a Twitter thread on Nov. 30 that Auros had defaulted on principal on a 2,400 wETH loan, the total value of which was around $3 million. .
Auros Global is one of the growing list of companies facing difficulties following the bankruptcy of FTX. FTX, along with other companies led by Sam Bankman-Fried, filed for Chapter 11 bankruptcy on November 11.
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