According to BlockBeats news on November 22, FTX Trading Ltd. and its affiliated debtors today announced that FTX is nearing completion of the final prerequisites for the court-approved bankruptcy reorganization plan, paving the way for FTX to begin distributing compensation to creditors and customers. The effective date of the bankruptcy reorganization plan means that the court-approved reorganization plan officially begins implementation. This usually marks a key step completed in the restructuring process for the bankrupt company, having reached agreements with creditors and other relevant parties and being prepared to carry out actual debt repayment and asset distribution according to the plan.
FTX CEO and Chief Restructuring Officer John J. Ray III stated, "We are pleased to announce that distributions will begin in early 2025. This timeline reflects the experience and ongoing efforts of the team supporting the debtor, which has recovered billions of dollars on behalf of FTX's creditors and customers. As we continue to take steps to maximize recoveries, we are fully committed to finalizing arrangements with the distribution agents and returning compensation to creditors and customers as soon as possible."
FTX provides the following update on the expected distribution timeline:
1. At the beginning of December, the debtor anticipates reaching a final arrangement with professional distribution agents who will assist FTX in distributing compensation to global customers within supported jurisdictions. At that time, the debtor will provide instructions to guide customers in establishing approved accounts on the existing customer portal.
2. By the end of December, the debtor expects to announce the exact effective date after the court approves the reserve amount for disputed claims, which is a prerequisite for distribution under the confirmation order.
3. The debtor currently expects the bankruptcy reorganization plan to take effect in early January 2025. According to the confirmation order, the first distribution will occur within 60 days after the effective date, targeting the convenience class creditors allowed to claim in the plan. The record date for the initial distribution will be the same as the effective date.