FTX, the cryptocurrency exchange currently undergoing bankruptcy proceedings, is progressing toward reorganization following significant creditor support for its revised restructuring plan. A recent press release reveals that more than 95% of voting creditors have endorsed the plan.
John J. Ray III, CEO and Chief Restructuring Officer of FTX, commended the robust backing as a testament to the plan’s efficacy. He emphasized that the plan’s design ensures the full return of bankruptcy claims plus interest for non-governmental creditors and addresses complex disputes involving multiple stakeholders.
FTX Reorganization Advances with Major Creditor Backing
John J. Ray III remarked, “The Plan’s innovative structure guarantees 100% repayment of bankruptcy claims along with interest for non-governmental creditors, while also resolving intricate disputes with various governmental and private parties.”
The reorganization plan aims to fully repay all bankruptcy claims and accrued interest to non-governmental creditors, potentially minimizing prolonged legal conflicts and expediting the repayment process.
The strategy includes a comprehensive asset recovery initiative, targeting the collection, conversion, and distribution of an estimated $14.5 billion to $16.3 billion in assets. These assets encompass those from FTX’s Chapter 11 debtors and affiliated entities, including holdings in the Bahamas.
Furthermore, the plan outlines the payment of up to 9% interest to primary creditors from the commencement of Chapter 11 proceedings until distribution. The final hearing for plan approval is slated for October 7, 2024, when the results of the voting will be disclosed.
FTX continues to face significant legal obstacles, including a potential 25-year prison sentence for former CEO Sam Bankman-Fried and an $11 billion fine for financial misconduct. Additionally, FTX and Alameda Research have agreed to a settlement with the CFTC, involving a $12.7 billion repayment to creditors.
As FTX moves through this challenging phase, the reorganization plan is a pivotal step toward achieving resolution and recovery for its creditors.
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Wintermute has accumulated deposits of 4,229 WBTC and 273 million USDT to CEX in the past two days.
