ChainCatcher reported that according to CryptoSlate, the FTX creditor group led by Sunil Kavuri opposed the reorganization plan proposed by the FTX bankruptcy administrator. According to documents submitted to the court on June 5, creditors pointed out that the plan did not pass the best interest test, contained clauses that were not in the interests of creditors, and ignored property rights issues.
Creditors said that cash repayments would result in customers having to pay taxes on the cash received. They suggested that in-kind repayments be adopted to avoid tax issues. Creditors further stated that FTX must update its disclosure statement for the settlement with the IRS. Under the settlement plan, the IRS will receive $200 million in priority claims within 60 days of approval. Another $685 million in junior priority claims will be paid after customers are fully repaid.
It is reported that on May 7, the FTX bankruptcy administrator announced a reorganization plan, and creditors will receive full cash repayment. Under the plan, creditors with claims of less than $50,000 will be eligible for 118% compensation within 60 days after court approval. Other non-government creditors will also receive full compensation and interest compensation of up to 9%.
