Auros Global Launches Restructuring Plan To Restore Company

Key Points:

• Auros Global reportedly suffered a $20 million dollar exposure in the FTX collapse.
• The crypto trading company said that once FTX failed, it was left in a situation where its immediate liquidity was insufficient to cover lender recalls.
• Auros hopes that once the reorganization plan is fully completed, the business will resume as usual.

According to a statement made by the cryptocurrency trading company Auros Global, regular business activities will resume following the implementation of a reorganization plan.

In the released statement, Auros also disclosed that it has applied for a type of restructuring program that would let the present management team continue operating as Authorized Managers while a restructuring plan is being developed.

The crypto trading company said that once FTX failed, it was left in a situation where its immediate liquidity was insufficient to cover lender recalls. However, the company’s top executives remained certain that they could survive the FTX infection storm. It hopes that once the reorganization plan is fully completed, the business will resume as usual.

The company also made a point of stating that it had asked for a light touch provisional liquidation order, which is frequently used when a company has a balance sheet solvent but a cash flow insolvent status. This enables the corporate reorganization to rapidly and successfully address the company’s cash flow insolvency challenges.

An increasing number of businesses are struggling as a result of the demise of FTX, including Auros Global, which reportedly had a $20 million exposure. On November 11, FTX and a number of other businesses run by Sam Bankman-Fried filed for Chapter 11 bankruptcy.

Due to the FTX outbreak, Auros Global failed to make the payment of 2,400 Wrapped Ether (wETH) on a DeFi loan on December 1. On November 30, M11 Credit, an institutional credit underwriter that oversees liquidity pools on Maple Finance, revealed that the Auros had missed the main payment on the 2,400 wETH loan, which was worth a total of about $3 million.

As Coincu reported, Auros has filed for Chapter 11 bankruptcy due to liquidity exhaustion.

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Harold

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