The non-performing asset fund is purchasing FTX non-performing assets at a maximum face value of 20%

According to the report, according to the source, the non-performing asset fund bought the bankruptcy claim right of FTX at a maximum face value of 20% in the private over-the-counter (OTC) market. FTX currently owes $3.1 billion to the 50 largest creditors. The valuation of FTX’s non-performing assets in the bankruptcy trading market is about 16% of the face value of the claim, and the individual claims being sold on the bankruptcy market XClaim are as high as $27 million. （CoinDesk）

Interpretation of this information:

The message reports that a non-performing asset fund bought the bankruptcy claim right of FTX in the private over-the-counter market at a maximum face value of 20%. FTX currently owes $3.1 billion to its 50 largest creditors. The valuation of FTX’s non-performing assets in the bankruptcy trading market is around 16% of the face value of the claim, and individual claims sold on the bankruptcy market XClaim are as high as $27 million.

This message suggests that FTX is in significant financial trouble and has not been able to repay its creditors. Due to this, FTX’s bankruptcy claims are being traded in the market. The non-performing asset fund has bought the bankruptcy claim right of FTX in the private over-the-counter market at a maximum face value of 20%. The fact that the face value of the claim is only 20% suggests that the fund believes that FTX’s assets may be worth less than what it owes.

Furthermore, the report highlights that FTX currently owes $3.1 billion to the 50 largest creditors, which adds to the scale of the company’s debt. The valuation of FTX’s non-performing assets in the bankruptcy trading market being around 16% of the face value of the claim shows that the market has a low expectation of the value of FTX’s assets or a willingness to pay a premium for the claim. The high individual claims being sold on the bankruptcy market XClaim, such as $27 million, indicate the severity of the situation and that FTX’s creditors are seeking to recoup as much value as possible.

Overall, this message suggests that FTX’s financial situation is precarious, and the company is struggling to repay its creditors. The fact that bankruptcy claims are being traded in the market and the valuation of FTX’s non-performing assets is low suggests that there is little confidence in the company’s future prospects.