Molly WhiteFTX Hearing thread.
"The dumpsterfire is out", says debtor counsel Andrew Dietderich.
Debtors are having him go into substantial detail about his past experience overseeing the bankruptcies of Fruit of the Loom, Enron, Nortel, etc. etc.
John J. Ray III now being sworn in to testify. Ray is the CEO of FTX, and was appointed to oversee the bankruptcy when SBF stepped down.
US Trustee has objected to a 3800+ page filing made on Friday by the debtors, which consists of the examiners' reports in Enron and Residential Capital.
Judge is not allowing the examiners' reports to be admitted for several reasons (timeliness, relevance, etc.)
Doesn't seem like a big deal — debtors seemed to primarily want them admitted as exhibits solely to establish they existed, which is not in question.
FTX debtors are arguing that the US Trustee has been repeatedly overstepping in this case.
FTX debtors argue that, in the portion of the law that states that "the court shall order the appointment of an examiner ... as is appropriate", "as is appropriate" should be interpreted also as "if it is appropriate".
I'm on the edge of my seat.
Beginning now. US Trustee is arguing that the appointment of an examiner is actually mandatory here.
Now debtors are arguing that an independent examiner "even looking at the code" would put FTX's cybersecurity at risk.
🤔
Needless to say, I'm hoping the examiner will be approved.