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US trustee appeals FTX bankruptcy judge's ruling to deny appointment of independent examiner

The legal team for U.S. Trustee Andrew Vara petitioned to have the U.S. District Court consider an appeal for a ruling on an independent examiner in FTX's bankruptcy case.

McGinnis Walra, a foreign attorney who represented the rights and interests of the judiciary in the FTX bankruptcy proceedings, has appealed against a federal judge's refusal to appoint a separate examiner in the case.

In a document filed with the Delaware Foreign bankruptcy Court on March 6, the elite team of laws and regulations protested that the United States District Court had taken into account the appeal against Judge Robert Dorsey's ruling in February. A federal judge said at a hearing on February 15th that he rejected the resolution to appoint an inspector in the FTX bankruptcy, saying it would put "unnecessary pressure" on the company's creditors and debtors.

At the time, Judge Dorsey stated that the fee for an inspector "may be more than $100 million" and "not in the best interests of creditors". Mr Varra and four US senators have called on the court to appoint a separate inspector because it must be clear and imply an implicit transfer of benefits. The judge called the letter from due process "inappropriate unilateral communication" and he would not take this into account in the judgment.

Since filing for bankruptcy protection in November last year, FTX's bankruptcy proceedings have been in full swing. The criminal case against Rob Bankman-Fried has recently focused on the former CEO's bail conditions, and its trial plan gradually began in October-prosecutors have been looking to limit or terminate his ability to contact current and former employees of FTX and Alameda.

by Turner Wright
© 2023 WJB All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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