The SECRET MAN Who Cleans Billion-Dollar Bankruptcies (From Enron to FTX Collapse) John J Ray III

John Ray's career in corporate bankruptcy began at Fruit of the Loom, a well-known clothing manufacturer. John was appointed as the company's general counsel in 1998. A year later, however, the company declared bankruptcy. As the officially appointed Chief Administrative Officer, John Ray's journey began.

To manage the company’s excess debt, he halted payments to vendors, took legal action against the company’s former CEO, and managed the sale of assets to Warren Buffet’s investment firm Berkshire Hathaway Corp. in 2002. He seemed to have enjoyed the role Because After successfully leading the insolvency proceedings for Fruit of the Loom, John Ray started his firm, Avidity Partners LLC, specializing in large corporate bankruptcies. Other than the Enron case that he is well-known for, he has led the proceedings for multiple corporations, most notably Nortel, a Canadian tech firm, Overseas Shipholding, and Residential Capital.

With a legal career and having been practicing law for over three decades, his reputation as a restructuring expert for high-profile bankruptcy cases earned him the title of ‘the turnaround titan. He handled the liquidation of Enron's operations and successfully put billions of dollars back into the hands of investors, and a few years later, in 2003, he was called back to fight a civil lawsuit against Deutsche Bank, Citigroup, and other banks accused of manipulating Enron's finances. This action resulted in another billions of dollars being distributed to creditors

Ray's appointment as the new CEO of FTX gives creditors hope that they will recover at least some of the money they lost as a result of the fraudulent activities that led to FTX's collapse. He is arguably one of the best people for the job, given his track record of managing large corporate bankruptcies. FTX is in a "relaunch" phase as of late June 2023, with Ray eager to lead a more equitable FTX 2.0.

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