🚨#FTX emphasized in the recently revised disclosure statement:
If this plan is not passed, FTX's bankruptcy procedure may switch from CH11 to CH7, and execute the "liquidation procedure" of Chapter 7 of the Bankruptcy Law.
The appointment of a trustee to liquidate the debtor's assets may eventually lead to a significant reduction in the compensation assets received by creditors.
Referring to Voyager Digital, after the restructuring failed, the liquidation procedure was switched to execute, and the first round of distribution was only 37%. According to the comparison of FTX's bankruptcy asset scale, if CH7 is executed, the first round of distribution received by creditors will be reduced from 119% to between 70% and 80%. (IMO)
For this reason, the FTX debtor team calls on all creditors to vote in favor of the existing plan. (This is a forced threat)
The bankruptcy court will hold a hearing at 10 pm on June 25 (Beijing time) to decide whether to approve this plan.
If approved → Start the creditor voting procedure for voting → Finally, the bankruptcy court will hold a hearing to review the voting results and confirm whether the plan meets the requirements of the Bankruptcy Law. If the plan is finally confirmed, it will be legally effective and executed.
If the plan is not passed, according to the procedural plan rules formulated by the bankruptcy petition, the end of the second quarter of 2024 is the deadline for plan confirmation, otherwise the liquidation procedure will be Toggled.
