#FTT Rebound Analysis

The latest restructuring news from FTX is as follows:

• FTX expects its bankruptcy restructuring plan to take effect in early January 2025 and will initiate the first distribution process within 60 days. FTX CEO and Chief Restructuring Officer John J. Ray III stated that the company has recovered billions of dollars for creditors and customers and is working with distribution agents to expedite the distribution process as soon as possible.

• FTX provided an update on the expected distribution timeline: At the beginning of December, the debtors expect to reach a final arrangement with professional distribution agents, who will assist FTX in distributing compensation to global customers. At that time, the debtors will provide instructions to guide customers in establishing approved accounts on the existing customer portal. By the end of December, the debtors expect to announce the exact effective date after the court approves the reserve amount for disputed claims, which is a prerequisite for distribution according to the confirmation order.

• According to the confirmation order, the first distribution will take place within 60 days after the effective date, targeting convenience class creditors permitted to claim under the plan. The record date for the initial distribution will be the same as the effective date.

• FTX expects the total value of properties collected, converted to cash, and available for distribution to be between $14.5 billion and $16.3 billion. This amount includes assets controlled by the Chapter 11 debtor and those controlled by the joint official liquidators of FTX Digital Markets, Ltd. (Bahamas), the Bahamas Securities Commission, and the joint official liquidators of FTX Australia.

• It is reported that FTX owes customers and other non-government creditors approximately $11 billion. This additional cash will be used to pay interest to the company’s more than 2 million customers, which is a rare outcome, as creditors in U.S. bankruptcy cases typically receive only a small portion of par value in compensation.

This information provides the latest progress and expected timeline for FTX's restructuring plan, revealing a clearer picture! To prevent a washout, conservative investors may wait for a lower custody entry, while aggressive investors may find this a good time to buy…#FTT