The latest news on FTX's restructuring is as follows:
• FTX expects its bankruptcy restructuring plan to take effect in early January 2025, with the first distribution process to be initiated 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 has provided an update on the anticipated distribution timeline: In early December, the debtors expect to finalize arrangements with professional distribution agents who will assist FTX in distributing compensation to global customers. At that time, the debtors will provide instructions for customers to establish 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 based on the confirmation order.
• According to the confirmation order, the first distribution will occur within 60 days after the effective date, targeting convenience class creditors allowed 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 assets 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 as well as assets 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 over 2 million customers, which is a rare outcome, as creditors in U.S. bankruptcy cases typically receive only a small portion of their claims at face value.
This information provides the latest progress and anticipated timeline of FTX's restructuring plan.
No FTT can ambush in advance.
#FTT