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FTX files for bankruptcy as CEO resigns

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FTX, a cryptocurrency exchange platform, has filed for bankruptcy amid its liquidity crisis.

In a statement shared on Twitter on Friday, the company said Sam Bankman-Fried has resigned from his position as chief executive officer (CEO) of FTX and will be succeeded by John Ray III.

It, however, added that Bankman-Fried “will remain to assist in an orderly transition”.

The development comes after Binance backed out of a deal to acquire FTX after a review of the company’s finances.

According to the statement, FTX Group, which includes the FTX.com entity as well as FTX US, Alameda Research, and approximately 130 additional affiliated firms have commenced voluntary “chapter 11 proceedings”.

Chapter 11 is a form of bankruptcy that involves a reorganisation of a debtor’s business affairs, debts, and assets, and for that reason is known as “reorganisation” bankruptcy.

It allows a company to stay in business and restructure its obligations.

“The immediate relief of chapter 11 is appropriate to provide the FTX Group the opportunity to assess its situation and develop a process to maximise recoveries for stakeholders,” John Ray III, the company’s new CEO, said in the statement.

“The FTX Group has valuable assets that can only be effectively administered in an organised, joint process.

“I want to ensure every employee, customer, creditor, contract party, stockholder, investor, governmental authority, and other stakeholders, that we are going to conduct this effort with diligence, thoroughness and transparency.”

Ray said that stakeholders should understand that events have been fast-moving and the new team was only engaged recently.

He also told stakeholders to review the materials filed on the docket of the proceedings over the coming days for more information.

The statement added that specific FTX-related subsidiaries including Ledgerx, FTX Digital Markets, FTX Australia, and FTX Express Pay, were excluded from bankruptcy proceedings.

Bankman-Fried also apologised to investors and customers in a series of tweets, adding that he remains optimistic about the company’s future.

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Lagos-bound Air Peace flight makes emergency landing after false fire alarm

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Air Peace says its Port Harcourt-Lagos flight landed at the destination airport earlier than scheduled, following a presumed fire incident on the aircraft.

In a statement on Thursday, the management of Air Peace said a few minutes before landing, the aircraft’s captain noticed a fire warning indicator in the cockpit.

The airline said upon landing, it was discovered that the alarm was falsely triggered as ‘there was no fire event”.

“We wish to inform the flying public of an incident that occurred during our Port Harcourt-Lagos flight P47193 of today, April 25, 2024,” the statement reads.

“Some minutes before landing, our Captain noticed a fire warning indicator in the cockpit. The pilots performed all safety precautionary measures and the fire indicator went off.

“The Captain immediately notified our Operations Control Center in Lagos at 17:37hrs.

“It was determined upon landing that the alarm was falsely triggered as there was no fire event.”

According to the airline, the plane landed safely and all passengers disembarked “normally”.

Air Peace reassured the travellers that safety remains its top priority, expressing unwavering commitment.

On April 17, an Owerri-bound Air Peace flight turned back to Abuja over ‘sunset operations’ at its destination airport.

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Dana Air initiates refunds following suspension by NCAA for safety audit

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Dana Air has announced that it is processing refunds for flights affected by its recent temporary suspension.

The Nigeria Civil Aviation Authority (NCAA) imposed the suspension to conduct a safety and financial audit following a runway incursion incident involving one of the airline’s aircraft on Tuesday.

The airline disclosed this information in a statement on its official X (formerly Twitter) account on Wednesday, apologizing for the inconvenience and disappointment the suspension may have caused its passengers regarding their travel plans.

According to Dana Air’s statement, passengers who have already booked flights are instructed to send their flight booking details (PNR) and bank account numbers to contact@flydanaair.com for refunds.

  • “In light of the suspension, we understand that you may have concerns regarding your bookings and travel plans. We assure you that we are processing refunds for affected flights over the next month.
  • “To expedite this process, we kindly request that passengers send their booking details (PNR) and bank account numbers to contact@flydanaair.com,” the statement read in part.

The statement also assured Dana Air customers that the airline is fully cooperating with aviation authorities to address any concerns and ensure that the matter concerning the suspension of its operating license is swiftly resolved.

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Naira falls to N1,300/$ at parallel market

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The naira, on Wednesday, depreciated to N1,300 per dollar at the parallel section of the foreign exchange (FX) market.

The current FX rate signifies a 3.17 percent drop from the N1,260 traded on April 22.

Currency traders, known as bureau de change (BDC) operators, quoted the buying rate at N1,260 and the selling price at N1,300 — leaving a profit margin of N40.

At the official window, the naira fell to N1,308.52 against the dollar — a 0.64 percent decline from the N1,300.15 traded on April 23.

According to the FMDQ Exchange, a platform that oversees official FX trading in Nigeria, the naira recorded a high of N1,367 and a low of N1,098.

With the current record, the official window rate still surpasses that of the parallel market by N8.52.

The Central Bank of Nigeria (CBN), on April 23, reduced the FX rate for dollar allocations to BDC operators.

The financial regulator, in a circular signed by Hassan Mahmud, director of trade and exchange department, said it sold $10,000 at the rate of N1,021/$ to each BDC.

On April 8, CBN also sold FX to the BDCs at the rate of N1,101/$, compared to the N1,251 the apex bank offered to the parallel market operators on March 25 and the N1,301 announced on February 27.

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Bodex F. Hungbo, SPMIIM is a multiple award-winning Nigerian Digital Media Practitioner, Digital Strategist, PR consultant, Brand and Event Expert, Tv Presenter, Tier-A Blogger/Influencer, and a top cobbler in Nigeria.

She has widespread experiences across different professions and skills, which includes experiences in; Marketing, Media, Broadcasting, Brand and Event Management, Administration and Management with prior stints at MTN, NAPIMS-NNPC, GLOBAL FLEET OIL AND GAS, LTV, Silverbird and a host of others

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