Custodial account – Sarah Long http://sarahlong.org/ Tue, 22 Nov 2022 05:29:58 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://sarahlong.org/wp-content/uploads/2021/10/icon-44-120x120.png Custodial account – Sarah Long http://sarahlong.org/ 32 32 “No amount” will be paid to SBF or his entourage https://sarahlong.org/no-amount-will-be-paid-to-sbf-or-his-entourage/ Tue, 22 Nov 2022 00:07:46 +0000 https://sarahlong.org/no-amount-will-be-paid-to-sbf-or-his-entourage/ Former FTX CEO Sam Bankman-Fried was right about one thing: he and his entourage will no longer see money from the company. FTX stated in a case in court over the weekend that neither Bankman-Fried nor the three recently laid off members of his inner circle (nor their family members) will see any compensation from […]]]>

Former FTX CEO Sam Bankman-Fried was right about one thing: he and his entourage will no longer see money from the company.

FTX stated in a case in court over the weekend that neither Bankman-Fried nor the three recently laid off members of his inner circle (nor their family members) will see any compensation from the now bankrupt company.

The way Bankman-Fried said on Nov. 10, the day before FTX filed for bankruptcy and stepped down as CEO, put users first. “After that, investors – old and new – and employees who fought for what’s right in their careers and weren’t to blame for any of the bullshit,” he wrote. on Twitter.

At the time, he was still CEO and had yet to announce the company’s bankruptcy filing.

Since then, FTX has taken steps to distancing oneself from Bankman-Fried. Bahamian Regulators refuse and then confirmed that they ordered employees to move hundreds of millions of funds into unauthorized transactions on the same day, the company filed for Chapter 11 protection on November 11.

Now the company is making it clear that, at least in this, Bankman-Fried’s words will be true: “No amounts will be paid under the authorization sought by this petition to any of the following persons or to anyone known debtors have a family relationship with one of Samuel Bankman-Fried, Gary Wang, Nishad Singh or Caroline Ellison,” reads today’s filing.

Source: FTX Bankruptcy Court File

A spokesperson for FTX confirmed that co-founder and chief technology officer Gary Wang, chief engineering officer Nishad Singh and CEO of Alameda Research Caroline Ellison were fired on Friday, November 18 in a the wall street journal report.

The very pointed exclusion of Bankman-Fried and his entourage appeared in a FTX movement pay employees what they are owed for work done before the company filed for bankruptcy and continue to pay compensation and benefits during the legal process.

It is customary in bankruptcy cases for debtors, in this case FTX, to ask the judge for permission to continue paying their employees. After all, company funds are supposed to be frozen. But new FTX CEO John J. Ray III noted that it had been particularly difficult to locate all FTX funds and employees.

The filing in court also showed that even before filing for bankruptcy, the company had logged $20,000 in billable hours with Owl Hill Advisory, the company through which it hired John J. Ray III as its new CEO.

Ray himself commands $1,300 per hour, which the consulting firm will bill FTX on a monthly basis. Executives he hired from RLKS Executive Solution to help with finance and administration will receive $975 per hour.

FTX also said in the filing that it had suspended its practice of paying certain employees “with their proprietary cryptocurrency token and/or stock options or equity compensation.” FTX’s proprietary token is the FTX Token, or FTT.

FTX not sure how much money it has or how many people it employs: CEO John J. Ray

Trouble began for FTX and quantitative trading desk Alameda Research, its sister company, when a leaked balance sheet showed Alameda’s $14 billion balance sheet included $5 billion from FTT. This prompted Binance, a former FTX investor, to announce that it would liquidate its $580 million FTT position. The resulting bank rush sent the price of FTT plummeting as users rushed to sell their tokens and withdraw funds from the FTX platform.

After Binance expressed its intention to acquire rival crypto exchange FTX, Binance called off the deal a day later. Then Bankman-Fried said in several lengthy Twitter threads that he misunderstood the company’s leverage and that he and his team would work to find cash, announcing at one point that there was a pending deal with Justin Sun’s TronDAO.

But shortly after that announcement, FTX filed for Chapter 11 bankruptcy protection on Friday, November 11.

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FTX’s Bahamas unit files for bankruptcy in New York https://sarahlong.org/ftxs-bahamas-unit-files-for-bankruptcy-in-new-york/ Wed, 16 Nov 2022 13:15:00 +0000 https://sarahlong.org/ftxs-bahamas-unit-files-for-bankruptcy-in-new-york/ New York CNN Business — FTX Digital Markets, the Bahamas-based unit of the recently collapsed cryptocurrency trading platform, has filed for bankruptcy protection in the United States. The company filed in New York court on Tuesday under Chapter 15, which is a way for foreign companies to use US bankruptcy law to restructure debt – […]]]>


New York
CNN Business

FTX Digital Markets, the Bahamas-based unit of the recently collapsed cryptocurrency trading platform, has filed for bankruptcy protection in the United States.

The company filed in New York court on Tuesday under Chapter 15, which is a way for foreign companies to use US bankruptcy law to restructure debt – which is usually done because US law offers greater protection than those of other countries.

The move comes after the US arm of the crypto exchange, FTX Group, suddenly filed for bankruptcy Friday after facing a “serious liquidity crisis”. FTX founder Sam Bankman-Fried stepped down as CEO the same day.

The rapid collapse of FTX marked a staggering downfall for one of the largest and most powerful players in the crypto industry.

There could be more than 1 million creditors in previously filed U.S. cases, the FTX Group said Monday, adding that it had been in contact with “dozens” of U.S. and international regulators, including the U.S. Attorney’s Office, the States Securities and Exchange Commission States and the Commodity Futures Trading Commission.

Meanwhile, authorities in the Bahamas – where FTX is based – are investigating whether criminal misconduct occurred in connection with the company’s implosion, the Royal Bahamas Police said in a statement. statement Sunday.

FTX is one of many non-US based companies to use the protections of US bankruptcy law. Just this year, Scandinavian Airline SAS and the British company Cineworld Group, owner of the chain of cinemas Regal Cinemasfiled for bankruptcy in the United States.

– CNN’s Matt Egan and Allison Morrow contributed to this report.

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TSM releases statement as major sponsor FTX files for bankruptcy https://sarahlong.org/tsm-releases-statement-as-major-sponsor-ftx-files-for-bankruptcy/ Sun, 13 Nov 2022 03:41:18 +0000 https://sarahlong.org/tsm-releases-statement-as-major-sponsor-ftx-files-for-bankruptcy/ Andre Amos ❘ Posted: 2022-11-13T03:32:18 ❘ Updated: 2022-11-13T03:32:27 TSM released a statement after major naming rights sponsor FTX, which signed a $210 million deal with the esports organization last year, filed for bankruptcy. The team is studying the “best next steps to protect” their brand and has touted their financial stability. Cryptocurrency exchange FTX made […]]]>

Posted: 2022-11-13T03:32:18

Updated: 2022-11-13T03:32:27

TSM released a statement after major naming rights sponsor FTX, which signed a $210 million deal with the esports organization last year, filed for bankruptcy. The team is studying the “best next steps to protect” their brand and has touted their financial stability.

Cryptocurrency exchange FTX made headlines after the major player in the space filed for bankruptcy. During the first report pointed to potential bailout by rival Binancethis agreement failed after analyzing the financial data.

Since then, the exchange was accused of moving hundreds of millions of dollars in assets under ‘suspicious circumstances’ while CEO Sam Bankman-Fried apologized to platform users for “end here.”

“Hopefully things can find a way to recover,” he said Nov. 11 after filing for bankruptcy with related FTX brands. “I hope it brings them some transparency, trust and governance.”

In the esports world, all eyes have been on TSM. The major North American organization wrote what has been described as the “greatest [deal] in the history of esports” when they signed a ten-year, $210 million naming rights deal with FTX.

The organization is aware of FTX’s collapse, it said in a Nov. 12 statement, while touting its own financial stability even as its main sponsorship collapses.

“Along with the rest of the world, TSM has been closely monitoring the situation surrounding FTX,” the organization said. “We have no idea of ​​the matter other than what has been publicly reported. We are currently consulting with legal counsel to determine the best next steps to protect our team, staff, fans and players.

Twitter: Sam Bankman-Fried TSM FTX

FTX’s deal with TSM included naming rights and a prime spot on the team’s jersey.

“To be clear, TSM is built on a solid foundation. We are stable and profitable, and we continue to forecast profitability for this year, next year and beyond. We look forward to a great 2023.”

TSM has previously hinted at plans to build “a strong footprint in Europe” as well as its other global expansions, with FTX’s support going in the direction of this goal. The company did not say whether these efforts can be continued.

The esports team wasn’t FTX’s only involvement in esports, either. The exchange signed a seven-year deal with the LCS in August 2021, and also had a one-year deal with FURIA. Neither has commented on the bankruptcy.

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FTX seeking $9.4 billion to avoid bankruptcy https://sarahlong.org/ftx-seeking-9-4-billion-to-avoid-bankruptcy/ Thu, 10 Nov 2022 20:58:32 +0000 https://sarahlong.org/ftx-seeking-9-4-billion-to-avoid-bankruptcy/ Following the collapse of Binance’s takeover of a crypto trading competitor FTXFTX CEO Sam Bankman Fried began the search for major new investments to save the company from bankruptcy. A Reuters exclusive report Thursday (Nov. 10) said Bankman-Fried was aiming to put in place a “rescue package” of up to $9.4 billion for the cryptocurrency […]]]>

Following the collapse of Binance’s takeover of a crypto trading competitor FTXFTX CEO Sam Bankman Fried began the search for major new investments to save the company from bankruptcy.

A Reuters exclusive report Thursday (Nov. 10) said Bankman-Fried was aiming to put in place a “rescue package” of up to $9.4 billion for the cryptocurrency exchange, citing a source familiar with the matter.

According to the source, Bankman-Fried is in talks with several investors to start developing this package.

The CEO is already discussing a $1 billion investment from the crypto network tronas well as $1 billion from the cryptocurrency exchange OKX$1 billion from the cryptocurrency company Attached and $2 billion from various other investment funds.

Representatives for FTX did not immediately respond to PYMNTS’ emailed request for comment.

Bankman-Fried has so far resisted pressure to file for bankruptcy, the Reuters source noted, as it scrambles to raise the money needed to keep the crypto exchange afloat.

The last few days have been eventful for FTX following the announcementand eventually cancelationof the now defunct acquisition of the exchange by Binance.

Bankman-Fried published a statement to customers on Thursday via Twitter, indicating that the company is taking the time this week to raise cash.

“Every penny of this – and existing warranties – will go directly to users, unless or until we’ve done the right thing with them,” he said in the Twitter thread.

Related: FTX used customer funds to support Alameda research

Just Thursday, the FTX CEO came under fire for allegedly loaning his trading company Alameda Research billions of dollars from FTX, including more than $8 billion in client funds. Bankman-Fried told an investor this week that Alameda owed about $10 billion to FTX and called its decision to use client funds to back Alameda a lack of judgment.

We are always looking for partnership opportunities with innovators and disruptors.

Learn more

https://www.pymnts.com/cryptocurrency/2022/ftx-deal-collapse-underscores-shaky-crypto-confidence/partial/

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Port objects for rent discovered during the bankruptcy process https://sarahlong.org/port-objects-for-rent-discovered-during-the-bankruptcy-process/ Tue, 08 Nov 2022 13:00:00 +0000 https://sarahlong.org/port-objects-for-rent-discovered-during-the-bankruptcy-process/ Bankruptcy proceedings revealed that Han Joe Ro LLC signed a lease with the state Department of Health to quarantine patients with COVID-19. The Port of Olympia claims the lease is in breach of its land lease with Han Joe Ro. rboone@theolympian.com Rolf Boon Bankruptcy proceedings for a company that operates two hotels in Thurston County […]]]>

Bankruptcy proceedings revealed that Han Joe Ro LLC signed a lease with the state Department of Health to quarantine patients with COVID-19.  The Port of Olympia claims the lease is in breach of its land lease with Han Joe Ro.

Bankruptcy proceedings revealed that Han Joe Ro LLC signed a lease with the state Department of Health to quarantine patients with COVID-19. The Port of Olympia claims the lease is in breach of its land lease with Han Joe Ro.

Rolf Boon

Bankruptcy proceedings for a company that operates two hotels in Thurston County revealed a signed lease between the company and the state Department of Health that the Port of Olympia opposes, according to the court records.

And the port’s objection once again raises the question of whether hotels will ever be used as a form of accommodation outside of their destination.

Han Joe Ro LLC, which operates as Oyo Hotel and Comfort Inn on land owned by the Port of Tumwater, filed for Chapter 11 bankruptcy in May in the U.S. Western District Bankruptcy Court from Washington.

Chami Ro, a member of the limited liability company, declined to comment on Monday.

A Chapter 11 filing usually means the company is looking to reorganize and stay in business. Han Joe Ro’s file shows that the company has assets between $1 million and $10 million, but also liabilities that are between $1 million and $10 million.

The Port of Olympia hinted at trouble in March when a port official said the Oyo Hotel was in foreclosure. Around that time, the port had heard from Han Joe Ro’s lender that it was headed for foreclosure, Lisa Parks, the port’s director of executive services, said Monday.

The port was notified by the bank because they are the underlying owners of the property, she said.

Han Joe Ro filed for bankruptcy on May 12. The legal process unfolded over the following months until October, when the port discovered a lease for the Comfort Inn property at 1620 74th Ave. SW. The Oyo Hotel is located at 1600 74th Ave. SW.

The lease, copies of which are included in the bankruptcy filing, shows that Han Joe Ro and the state Department of Health agreed in late April to a five-year deal for the Comfort Inn to be used as a COVID-19 quarantine facility. . This lease was later amended in August to provide “temporary accommodation” for people “resulting from a public health emergency related to an emerging infectious disease/other special pathogen”.

The port says the DOH lease is in violation of the ground lease the port has had with Han Joe Ro since October 2000.

“This agreement is a violation of HJR’s ground lease (with the Port), which limits the use to ‘the construction and operation of a nationwide franchise motel’ and raises substantive concerns about the effects downstream,” Port of Olympia attorney Christopher Pierce-Wright said in an email included in the bankruptcy filing.

Downstream concerns relate to the Federal Aviation Administration and its oversight of Olympia Regional Airport and the immediate area, including hotel properties.

The port has received $28 million in airport-related subsidies since 1993, the port’s objection says.

“The debtor’s breach carries a significant risk of awarding revenue the port receives from the FAA for airport updates, maintenance and improvements. The FAA grants include regulations and restrictions on the use of property surrounding the airport, including prohibiting residential use of the subject property.

The port has already come here.

In 2021, Ro and the Thurston County Housing Authority reached a $3.3 million tentative deal to convert the Oyo building into housing for 58 low-income seniors, The Olympian reported.

But because the hotel is on port-owned property adjacent to Olympia Regional Airport, it’s encumbered by FAA rules that prohibit the use of land near airports for “residential” purposes. “, according to The Olympian.

The port then hired a consultant who produced a report on whether the hotel properties could be released from FAA oversight. The report concluded the port could do so, provided certain standards were met, port executive director Sam Gibboney said Monday.

One of these standards: Show that the property is no longer necessary for airport operations. Gibboney thinks the port could make that point successfully, but in other areas it’s not as easy, she said.

Another standard: if there is a transaction for hotel properties, will the economic benefit be equal to or greater than civil aviation? Gibboney acknowledged that it’s a little harder to quantify.

However, she added that the Thurston County Housing Authority remains interested in the property.

As for the lease terms between Han Joe Ro and the Department of Health, the bankruptcy filing shows the company was to be paid approximately $100,000 per month for use of the Comfort Inn property. Given the bankruptcy, is this money still paid out?

A spokeswoman for the state’s Department of Business Services, which signed the lease, looked into the matter on Monday. The Olympian expects to update this story.

Port executive director Gibboney added that although Han Jo Roe has filed for bankruptcy, they continue to pay port rents.

“They have no arrears with us,” she said.

Rolf has worked for The Olympian since August 2005. He covers breaking news, the town of Lacey and business for the newspaper. Rolf graduated from Evergreen State College in 1990.

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Hazel Hawkins clears Chapter 9 bankruptcy filing https://sarahlong.org/hazel-hawkins-clears-chapter-9-bankruptcy-filing/ Sat, 05 Nov 2022 03:17:33 +0000 https://sarahlong.org/hazel-hawkins-clears-chapter-9-bankruptcy-filing/ five months later Hazel Hawkins Memorial Hospital CEO Steve Hannah has announced plans for a new $250 million the hospital, and only 25 days after being terminatedThe San Benito Health District Board of Directors announced a tax emergency and authorized the filing of a Chapter 9 bankruptcy petition. Under Section 32104 of the California Health […]]]>

five months later Hazel Hawkins Memorial Hospital CEO Steve Hannah has announced plans for a new $250 million the hospital, and only 25 days after being terminatedThe San Benito Health District Board of Directors announced a tax emergency and authorized the filing of a Chapter 9 bankruptcy petition.

Under Section 32104 of the California Health and Safety Code, the board declared that the district would not be able to pay its obligations within the next 60 days and determined that it was in the best interest of the district, to its patients, creditors, citizens, taxpayers and employees to file the petition.

The board voted unanimously to give notice that the district has declared a fiscal emergency and passed a resolution declaring that the hospital’s financial condition jeopardizes the health, safety or welfare of area residents. service of the district, absent the protections of Chapter 9, Title 11, of the United States Bankruptcy Code.

The board has determined that the district is insolvent based on cash flow in the current fiscal year and will also be insolvent in the following fiscal year.

He has delegated authority to Chief Financial Officer Mark Robinson to execute and file the Chapter 9 petition in the US Bankruptcy Court for the Northern District of California by December 31 and to continue negotiations with creditors. Robinson told the board that Medicare determined the hospital had overpaid $5.2 million and would have to repay it over the next year. Medicare also told the hospital it would cut payments for inpatient and outpatient care by an additional $5.2 million.

According to the meeting’s agenda file, “Despite efforts over the past few years by management and the District Board of Directors to take significant steps to reduce expenses, runaway inflationary increases combined with Reimbursement declines have created an operating and cash flow deficit that threatens the district’s financial viability and, if allowed to continue, could threaten patient care and safety.

On October 21, BenitoLink filed a public record request with the hospital requesting specific financial information and possible bankruptcy. According to their website, Hazel Hawkins Memorial Hospital has approximately 578 employees and 136 physicians.

Under California law, the district was required to give 48 hours notice to the public and the media before a special meeting. According to Frankie Gallagher, director of marketing and community relations, the notice was posted on the hospital’s website at 3:30 p.m. on Nov. 3, just 24 hours before the meeting. Several people in the room who spoke to the board said they only heard about the meeting the day before. Some said they were stunned to learn of the bankruptcy, given millions of dollars spent on recent renovations, a new building across town to relocate services and plans for a new hospital.

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What we read this week [November 1, 2022] – Insolvency/Bankruptcy https://sarahlong.org/what-we-read-this-week-november-1-2022-insolvency-bankruptcy/ Thu, 03 Nov 2022 12:49:37 +0000 https://sarahlong.org/what-we-read-this-week-november-1-2022-insolvency-bankruptcy/ November 03, 2022 Mayer Brown To print this article, all you need to do is be registered or log in to Mondaq.com. In an article from October 31, 2022, Reuters reports that theater chain Cineworld Group has reached an agreement with its landlords and lenders whereby Cineworld has agreed to pay at […]]]>

To print this article, all you need to do is be registered or log in to Mondaq.com.

  • In an article from October 31, 2022, Reuters reports that theater chain Cineworld Group has reached an agreement with its landlords and lenders whereby Cineworld has agreed to pay at least $20 million in rent that will accrue after September 30, 2022. Cineworld Group, which operates nearly 800 movie theaters in ten countries, filed its Chapter 11 case in the Southern District of Texas Bankruptcy Court in September 2022, and the case is currently pending before Judge Marvin Isgur. Following the announcement of the settlement, Judge Isgur said the deal was “pretty astounding” given the distance between Cineworld and its owners and creditors on the issue at the start of the case. [Reuters; Oct. 31, 2022]

  • Report of Bloomberg indicates that distress is growing in the US corporate bond market. In the last full week of October 2022, the amount of dollar-denominated bonds and loans trading at distressed levels reached $271.3 billion, the largest volume since September 2020, and representing the fifth consecutive week of growth.
    [Bloomberg; Oct. 28, 2022]

  • The the wall street journal reports that Core Scientific Inc., which is one of the largest bitcoin miners in the world, has hired restructuring advisers in recent weeks, continuing a trend of restructuring activity in the crypto industry. Core Scientific said it will miss upcoming debt payments due to ongoing legal disputes with crypto lender Celsius Network LLC, which Core Scientific said has impacted its performance and liquidity. [WSJ; Oct. 27, 2022]

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The bankruptcy of Argo Blockchain? ARB share price plunges 60% as fundraising plan fails https://sarahlong.org/the-bankruptcy-of-argo-blockchain-arb-share-price-plunges-60-as-fundraising-plan-fails/ Mon, 31 Oct 2022 12:41:26 +0000 https://sarahlong.org/the-bankruptcy-of-argo-blockchain-arb-share-price-plunges-60-as-fundraising-plan-fails/ Argo Blockchain is a bitcoin mining company that primarily uses renewable energy – Photo: Shutterstock Contents Argo’s financial difficulties ARB share price Argo Blockchain’s Renewable bitcoins (BTC) the mining business no longer appears financially viable after a fundraising method collapsed. The mining company signed a “non-binding” letter of intent with a strategic investor in early […]]]>
Argo Blockchain is a bitcoin mining company that primarily uses renewable energy – Photo: Shutterstock
Contents

Argo Blockchain’s Renewable bitcoins (BTC) the mining business no longer appears financially viable after a fundraising method collapsed.

The mining company signed a “non-binding” letter of intent with a strategic investor in early October to raise around $27 million. However, it was revealed on October 31 that the deal fell through.

Despite research into alternative fundraising methods, Argo’s actions (ARBgb) has fallen 57% since early October. This followed news that the company was struggling with crypto bear market.

Argo Blockchain (ARBgb) Stock Price Chart

Argo’s financial difficulties

On October 7, Argo announcement that he was pursuing several different fundraising methods to maintain a positive bank balance. These were “intended to provide additional capital to the business and to ensure that the company has the necessary working capital to execute its current strategy and meet its obligations over the next twelve months”.

CEO Peter Wall revealed that Argo was struggling with high electricity prices combined with low BTC the price. He said in a video posted to Twitter that this “results in a slight price drop for Argo.”

Three different strategies were outlined in the statement to address this issue. The letter of intent was signed to amend an equipment financing agreement, which was to release $5.7 million of restricted cash. It also revealed plans to sell 3,400 mining rigs for around $6.8 million.

Finally, the most significant contribution to fundraising came from a plan to subscribe for shares with a strategic investor. However, this $27 million deal was recently revealed to have collapsed.

Argo said it no longer believes this agreement is valid on the previously announced terms and the company is exploring other options. He also issued a grim warning and said:

“If Argo fails to secure additional financing, Argo would become cash flow negative in the near term and would have to scale down or cease operations.”

ARB share price

Despite some peaks and troughs, Argo’s price on the London Stock Exchange has struggled since 2021, according to the Capital.com trading platform.

This was fueled recently following news of Argo’s financial troubles. After hitting a slight peak at 35.5p on October 4, its stock price fell throughout the month.

The price fell to a low of 13.35p on October 18, a drop of 62%. But it recovered slightly and closed on October 28 at 4:25 p.m.

Argo is still awaiting a full investor response to news of its failed fundraising deal, as it is both listed on NASDAQ and the London Stock Exchange.

After falling to 4.13p shortly after the LSE opened today, Argo was trading around 8.5p in London at the time of writing. At the same time, in premarket New York trading, Argo was trading at $1.21, down from its closing price of $1.97 on Friday.

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The AAP pushes the State towards bankruptcy: Warring https://sarahlong.org/the-aap-pushes-the-state-towards-bankruptcy-warring/ Fri, 28 Oct 2022 18:32:22 +0000 https://sarahlong.org/the-aap-pushes-the-state-towards-bankruptcy-warring/ Punjab Congress Speaker Amrinder Singh Raja Warring on Friday warned the state government led by the Aam Aadmi party against fiscal profligacy which can push the state into bankruptcy. “Given the rate at which the AAP Government of Punjab is borrowing money, this will add at least one million rupees to the already indebted state,” […]]]>

Punjab Congress Speaker Amrinder Singh Raja Warring on Friday warned the state government led by the Aam Aadmi party against fiscal profligacy which can push the state into bankruptcy.

“Given the rate at which the AAP Government of Punjab is borrowing money, this will add at least one million rupees to the already indebted state,” Warring said, adding that over the past six months the state had incurred a debt of 11,464 rupees. crores, which means that the total borrowing in five years will exceed Rs one lakh crores.

The state congress president said there was a sharp decline in revenue collection also in terms of sales tax and stamp duty – two important indicators of economic and business activity. “The collection of additional revenue shown under the heading excise was due to the posting of a security amount by the alcohol entrepreneurs. This is just a juggling of numbers, when in reality there is no ‘increase in income,’ he said.

He said that despite such a tight budget situation, the state government was shamelessly spending money on advertisements and that too in outlying states like Gujarat and Himachal Pradesh. “You will have to account for every penny you waste that should otherwise be spent for the welfare of the people of Punjab,” he said.

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‘Crypto King’ Narrowly Avoids Arrest By Turning Cell Phones Into Bankruptcy Proceedings https://sarahlong.org/crypto-king-narrowly-avoids-arrest-by-turning-cell-phones-into-bankruptcy-proceedings/ Wed, 26 Oct 2022 12:43:04 +0000 https://sarahlong.org/crypto-king-narrowly-avoids-arrest-by-turning-cell-phones-into-bankruptcy-proceedings/ The self-proclaimed “Crypto King” from Whitby, Ontario has been nearly arrested twice in the past two months for failing to comply with bankruptcy proceedings against him and his company from 119 creditors who claim that ‘they owe over $25 million. The bankruptcy trustee investigating what happened to the millions creditors gave Aiden Pleterski to invest […]]]>

The self-proclaimed “Crypto King” from Whitby, Ontario has been nearly arrested twice in the past two months for failing to comply with bankruptcy proceedings against him and his company from 119 creditors who claim that ‘they owe over $25 million.

The bankruptcy trustee investigating what happened to the millions creditors gave Aiden Pleterski to invest took the ‘extraordinary remedy’ of seeking warrants for the 23-year-old’s arrest after he was failed to hand over his cellphones and other devices as ordered, according to recently released reports from trustee Grant Thornton Ltd.

It was only on the eve of these warrants being issued in September and earlier this month that Pleterski provided what was required at the “last minute”.

The reports also show how the scope of the bankruptcy investigation extended to the recovery of family assets from Pleterski and others – including a Porsche, Bentley and other luxury vehicles – including the trustee discovered that they had been paid by Pleterski using funds from investors.

Pleterski also appears to have sought out the property of the Burlington, Ont., mansion, which he was renting for $45,000 a month, according to trustee reports.

More and more creditors are coming forward.

“Some of the stories of the impact the losses caused by Pleterski’s alleged actions are having on creditors are heartbreaking,” writes Rob Stelzer, senior vice president of Grant Thornton, in the report.

Creditors gave Pleterski money to invest in cryptocurrency and currencies. Investment terms often involved a 70-30 capital gains split between the investor and Pleterski, a commitment that the initial investment would be refunded in full if lost, and target capital gains of 10 to 20% every two weeks, according to court documents and investor contracts.

Pleterski’s attorney, Micheal Simaan, previously told CBC Toronto that his client disputes many of the claims against him and Pleterski believes the financial claims of many people who gave him money “have been grossly exaggerated.” CBC Toronto contacted Simaan about the latest developments via email Tuesday, but he declined to comment.

Pleterski led a luxurious life before investors came for their money earlier this year. (Name withheld/Facebook)

At a meeting of creditors in August, the trustee said Pleterski claimed he lost most of the money given to him in late 2021 and early 2022 “in a series of margin calls and bad trades. “. Asked about his record keeping for investment funds, Pleterski told the meeting that he was very disorganized, did not monitor his finances, and did not keep any records of his debts or payments. .

Last month, a CBC Toronto investigation found how the young man, dubbed “the Crypto King” in several paid promotional articles, led a luxurious life before investors came for their money earlier this year. At the time, records showed Pleterski owned 11 vehicles, leased four other luxury cars, flew private jets and paid $45,000 a month to rent a lakeside mansion in Burlington, Ontario.

“This guy had a high consumption rate, but that doesn’t take into account how much money is missing,” fraud-fighting lawyer Norman Groot previously told CBC Toronto.

Two McLarens, two BMWs and a Lamborghini were just a few of the $2 million in assets previously seized by the trustee.

The Pleterski family driving luxury vehicles

The new reports detail more undisclosed assets discovered by the trustee, including jewelry and five luxury vehicles linked to Pleterski’s family. The cars include a Porsche Boxster and an Audi e-tron driven by Pleterski’s mother, an Audi S5 driven by Pleterski’s brother, and a BMW M8 and a Bentley Bentayga driven by Pleterski’s father.

Investigators are also looking into the property of the lakeside mansion where Pleterski lived. According to a report, the trustee confirmed Pleterski entered into a buy, sell and lease agreement with a numbered company owned by Sunray Group of Hotels for the Burlington, Ontario property.

Pleterski owned, paid for and leased more than a dozen luxury cars, according to the bankruptcy trustee. The trustee’s investigation has now widened to include cars driven by his family members. (aiden_pleterski/Instagram)

The trustee discovered that Pleterski had transferred a McLaren Senna with a potential market value of $1.5 million to Sunray Group of Hotels as security for the hire purchase agreement for the lakeside mansion.

Since the CBC Toronto survey was released last month, the number of investors in the bankruptcy proceeding has risen from 29 claiming $13 million to nearly 120 creditors who say they owe more than $25 million.

Bankruptcy is unlikely to recover all investments

Going forward, the trustee is seeking court orders to combine the bankruptcies of Pleterski and his company, order multiple banks to provide additional information about Pleterski’s banking transactions, and compel auto dealerships to provide vehicle financial records. driven by the Pleterski family. Those issues will be before the court later this week.

Pleterski investors also face a November 22 deadline to prove how much they are owed in the bankruptcy proceedings. However, the trustee said in a letter to creditors that nothing is expected to be paid until at least next year and that there will be losses.

“Creditors should be warned that any dividends paid will be well below the amounts owed to them.”

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