Alameda Research (a sister company of FTX) has reached a $45million cash deal agreement for Sequoia Capital’s sale. Al Nawwar Investments RSC Limited is the buyer. It was incorporated under the laws in Abu Dhabi Global Market.
According to the official court document filed on March 8, the purchaser is required to bear the amount of any capital contributions made after the balance sheet date and on or prior to the closing date, while the amount of distributions received by the seller or seller’s estate is excluded. Furthermore, the seller must pay any cure costs.
The total amount payable to the company is $45 million, as no contributions nor distributions were made. The filing notes that after extensive arms’-length negotiations, the seller and purchaser entered into a Purchase and Sale Agreement for the aggregate consideration of $45,000,000.00. The Delaware Bankruptcy Judge John Dorsey must approve the deal, and a hearing date has been set for March 29, 2023.
This sell-pact is part of FTX’s attempts to sell its assets in tech and crypto ventures to pay creditors back. The exchange is dealing with $8.9 billion in unaccounted-for and missing FTX customer funds. The CEO and Chief Restructuring Officer of FTX Debtors, John J. Ray III, has confirmed that FTX’s accounting books and records are incomplete, and in many cases, totally absent. It is not clear how much compensation affected customers will get, even though the exchange has retrieved a few hundred million dollars.
Alameda Research’s sale of Sequoia Capital interests is a major move. This quantitative trading firm specializes in digital asset trading is Alameda Research. The company is well-known for its investments in blockchain and crypto technology. It also launched its own cryptocurrency exchange, FTX. Alameda Research can now focus on its core businesses while providing funds to FTX for its debt repayments.
Overall, both Alameda Research as well as FTX are pleased with the Sequoia Capital sale. The missing funds at FTX should be a concern. However, the exchange’s efforts towards selling assets and repaying its creditors is a step in the right directions. Investors will be closely monitoring the outcome of the March 29th hearing and the future direction of FTX.