FTX’s investment arm, Alameda Research, has struck a $45 million cash deal to sell its interest in Sequoia Capital to the Abu Dhabi sovereign wealth fund, according to court documents filed Wednesday.
The deal, subject to approval by Delaware bankruptcy judge John Dorsey, is part of the bankrupt company’s attempts to sell its investments in early stage crypto and tech ventures in a bid to repay creditors.
FTX “decided to enter into the Agreement with Purchaser based on its superior offer and ability to execute the Sale Transaction within a short time frame,” after receiving indications of interest from four parties and entering into negotiations with two for the sale of assets in the Sequoia Capital Fund, the document said.
The agreement could be closed as soon as March 31, though deals made by bankrupt companies are subject to close judicial scrutiny. The would-be buyer, Al Nawwar Investments RSC Limited, is ultimately owned by the government of Abu Dhabi, and already invests in Sequoia, the document said.
FTX group filed for bankruptcy in November, and Dorsey granted permission in January for some of FTX’s more easily separable assets to be offered for sale. Those included derivative arm LedgerX, stock-clearing platform Embed, and Japanese and European units. FTX management have said there’s still a massive balance-sheet shortfall, not helped by poor record keeping at the company.
This article was originally published by CoinDesk.