Golden Finance reported that a group of FTX creditors led by Sunil Kavuri submitted an objection to the court against the reorganization plan proposed by the FTX bankruptcy administrator. Creditors pointed out that the plan did not pass the best interest test, contained clauses that were not in the interests of the estate, and ignored the issue of property rights. Creditors said that cash repayment would cause customers to need to pay taxes on the cash received, thereby increasing the burden. They suggested using in-kind repayment to avoid tax issues. In addition, creditors asked FTX to update its settlement disclosure statement for the Internal Revenue Service (IRS). Under the settlement plan, the IRS will receive $200 million in priority claims within 60 days of approval, and an additional $685 million in secondary priority claims will be paid after customers are fully repaid. FTX's reorganization plan includes paying 118% compensation to creditors with claims of less than $50,000, and other non-government creditors will also receive full claims and receive interest compensation of up to 9%.
