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Prime Trust, a fintech solution for digital assets, filed for Chapter 11 bankruptcy in Delaware court this week, according to a press release. The filing comes as the company faces a shortage of customer funds and an inability to secure emergency financing earlier this year:
“The company […] continue to conduct their businesses as ‘debtors-in-possession’ under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and orders of the Bankruptcy Court.”
This move follows on the heels of the permanent appointment of John Guedry as Receiver of the company. In addition, a new Special Committee was authorized by Judge Susan Johnson of Nevada’s Eighth Judicial District Court to oversee the ongoing Chapter 11 cases.
Prime Trust will continue its operations, currently acting as “debtors-in-possession” within the framework established by the Bankruptcy Code. They are under the direct supervision of the Special Committee and the Bankruptcy Court.
Prime Trust has previously raised over $100 million from investors such as Kraken Ventures, Mercato Partners and Fin Capital. Today, it is conducting a strategic move aimed at re-founding the company’s financial foundation amid the financial problems that have grown since the crash of FTX in November 2022.
In its upcoming engagement with the Bankruptcy Court, Prime Trust intends to present several motions. It is primarily aimed at defining its strategic vision. The company expects that the motions will include requests to continue the regular payment of wages and the provision of benefits to its current employees.
“The Company intends to file several motions in the Bankruptcy Court designed to facilitate the Company’s orderly evaluation of all strategic alternatives, including the possible sale of the Company’s assets and operations as a going concern. worry.”
A dedicated restructuring committee works together with the company’s management and creditors, aiming for a transparent restructuring process, since “it is expected that these actions will include requests to continue payments on wages and will provide benefits to continuing employees as usual.”
