The crypto trading firm Auros Global reportedly suffered a $20 million dollar exposure in the FTX collapse.
Auros Global, a cryptocurrency trading company that reportedly lost $20 million in the FTX crash, has issued a statement announcing that it intends to restart regular operations following the implementation of a restructuring plan.
Following the collapse of FTX, the cryptocurrency trading firm shared that it “found itself in a position where immediate liquidity was insufficient to satisfy recalls from lenders.” However, the company’s top executives remained certain that they could survive the FTX infection storm.
In the released statement, Auros also disclosed that it has applied for a type of restructuring program that would permit the current management team to continue operating as “Authorized Managers” while a restructuring plan is being developed.
The bitcoin trading company hopes that once the restructuring plan is fully implemented, business will resume as usual. The corporation 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. On December 1, it was revealed that Auros Global had failed to make the required 2,400 Wrapped Ether (wETH) principal installment on a DeFi loan as a result of the FTX epidemic.
On November 30, M11 Credit, an institutional credit underwriter that oversees liquidity pools on Maple Finance, revealed in a Twitter thread that the Auros had missed a main payment on the 2,400 wETH loan, which was worth a total of about $3 million.
In the wake of FTX’s demise, an increasing number of businesses are struggling, including Auros Global. On November 11, FTX and a number of other businesses run by Sam Bankman-Fried filed for Chapter 11 bankruptcy
