Cryptocurrency exchange FTX announced on Tuesday (7th) that it had submitted a revised restructuring plan and disclosure report to the court. According to the plan, 98% of creditors will receive at least 118% of their recognized claims in cash within 60 days after the plan takes effect. Creditors will receive full repayment of principal and billions of dollars in compensation for the time value of their investments.

FTX CEO John J. Ray III said in a press release:

"We are pleased to be able to file a Chapter 11 plan to consider returning 100% of the bankruptcy claim plus interest to non-governmental creditors."

The latest restructuring plan is intended to provide "concentrated distributions" to FTX customers and creditors affected by the company's collapse in 2022, regardless of where their assets are located at the time. FTX estimates total cash available for distribution to be between $14.5 billion and $16.3 billion, pending finalization and approval of the plan by the U.S. Bankruptcy Court.

Under FTX's reorganization plan, creditors with allowed claims of less than $50,000 will be eligible for 118% compensation upon court approval, with FTX's proposal arranging repayment within 60 days of the plan taking effect.

FTX liquidated an extremely diverse set of assets, the majority of which came from investments or litigation claims held by its Alameda Research and FTX Venture businesses, FTX noted in its release.

This article FTX submits restructuring plan, 98% of creditors will receive at least 118% of their claims in cash first appeared on Zombit.