I was trying to reason through why somebody would step in as CEO specifically for the bankruptcy.
How does he get compensated? I’m assuming it’s not simply a goodwill/hobby thing
How does he get compensated? I’m assuming it’s not simply a goodwill/hobby thing
I’m surprised the debtors assumed control of the company that quickly though. Figured it would take some time to play out
Ofc, if I lend $100m to a company that you control, and you start siphoning that money into your bank account...then you aren't going to declare bankruptcy until the stealing is finished. So there are provisions to claw back money even ex-post (i.e. time doesn't matter) when someone has committed a crime...but the idea is that bankruptcies are wrapped up quickly because the longer it goes on the more value is lost by everyone (apart from lawyers)...speedy liquidation is also a central component of a well-functioning capitalist economy.
”Debtors” are people that owe money (i.e., here, the FTX family of corps).
This is not a case where the creditors (the people to whom money is owed) are in possession (or even yet identified), though that can happen in bankruptcy.
Thr bankruptcy court lets the bankrupt entity spend money (woth supervision) on tasks essential to what it needs to do in bankruptcy, including paying employees needed for that worm.