The judge presiding over the FTX bankruptcy case has denied the U.S. Trustee’s request to appoint an independent examiner for the ongoing proceedings. The decision comes after judge John Dorsey postponed the ruling last week, citing concerns that the examiner could cost creditors tens of millions of dollars.
The U.S. Trustee’s Argument for an Independent Examiner Ultimately Overruled by the Court’s Authority
In the latest filing in the FTX bankruptcy case docket, judge John Dorsey has denied the appointment of an independent examiner. Dorsey stated that the current team, led by FTX CEO John J. Ray III, is “highly qualified” to handle the bankruptcy proceedings independently. The decision overrides the U.S. Trustee’s request to hire an independent examiner, which was said to be mandated by Congress.
The judge presiding over the FTX bankruptcy case stressed, however, that he had “no doubt that appointing an examiner would not be in the best interest of the creditors.” According to estimates, current management claimed that expenses for an independent examiner could reach between $90 million and $100 million. “Every dollar spent on administrative expenses in these cases is $1 less for the creditors,” Dorsey stated during the…