Over 95% of FTX creditors back the reorganization plan, representing 99% of claims by value.
FTX's reorganization plan aims to repay 100% of non-governmental bankruptcy claims plus interest.
The October 7, 2024, hearing will finalize the plan as FTX faces legal challenges, including a $12.7 billion settlement.
FTX and its associated debtors have expressed preliminary approval of a reorganization plan submitted to the United States Bankruptcy Court for the District of Delaware. The plan has earned overwhelming support from creditors, a notable development as FTX continues its efforts to return funds to stakeholders following its collapse in November 2022.
https://twitter.com/FTX_Official/status/1826365362998501704 Widespread Creditor Approval Signals Broad Consensus
According to recent updates, more than 95% of creditors who participated in the voting process have backed the amended Plan of Reorganization. These votes represent a substantial 99% of the claims by value, indicating a broad consensus among the creditors, including those connected to FTX U.S. and Dotcom. John J. Ray III, FTXâs CEO and Chief Restructuring Officer, acknowledged the strong turnout, emphasizing that it demonstrates widespread support for the proposed reorganization strategy.
Plan Aims for Full Repayment
Central to the Plan of Reorganization is its provision to repay 100% of the amounts of bankruptcy claims, including interest, to non-governmental creditors. The plan also seeks to address various legal disputes with governmental and private entities, aiming to expedite the repayment process while avoiding protracted and costly legal battles.Â
FTX anticipates collecting, converting to cash, and distributing between $14.5 billion and $16.3 billion in assets, including those managed by the Joint Official Liquidators of FTX Digital Markets Ltd and the Securities Commission of The Bahamas.
October Confirmation Hearing
The confirmation hearing for the reorganization plan is scheduled to begin on October 7, 2024, where final vote counts will be announced. Meanwhile, FTX continues to handle various legal challenges, including lawsuits against former executives, such as the former CEO, Sam Bankman-Fried, who is currently serving a 25-year prison sentence and has been ordered to pay an $11 billion fine for financial fraud. Additionally, FTX and its affiliate, Alameda Research, have reached a settlement with the CFTC, requiring a repayment of $12.7 billion to creditors.
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