FTX Debtors Negotiate the Upgrade of Certain Creditors
The post FTX Debtors Negotiate the Upgrade of Certain Creditors appeared on BitcoinEthereumNews.com. FTX Debtors have agreed to a new Customer Shortfall Settlement following months of negotiations with FTX’s Committee of Unsecured Creditors, an ad hoc non-US customer committee, and other representatives. The court must approve the proposal that FTX Debtors (FTX) will file as part of their Amended Plan in December. Earlier this year, FTX.com and FTX US creditors filed customer property litigation, arguing they should be prioritized over unsecured creditors. The new plan follows FTX’s announcement to liquidate over $3 billion in crypto assets to make customers whole. FTX Debtor Chief Hails Creditor Agreement The amendment, if approved by the court, would see FTX.com and FTX US creditors receive 90% of the Debtors’ distributable assets over a new timeline. However, the Debtors expect that customers of FTX.com would sustain a greater percentage loss, and their final reimbursements would need to account for tax and other government regulations. Change in dollar value FTX tokens | Source: WSJ Still, the plan represents a milestone in the plan to make FTX customers whole, according to FTX’s restructuring chief, John Ray III. “The proposed settlement of the customer property issues is another major milestone in our case. [The] debtors and their creditors have created enormous value from a situation that easily could have been a near-total loss for customers.” Read more: FTX Collapse Explained: How Sam Bankman-Fried’s Empire Fell The bankruptcy estate has invited customer queries about the proposed Customer Shortfall Settlement. FTX Debtors will file the proposal in court on Dec. 16. FTX filed for bankruptcy on Nov. 11, 2022, after a leaked balance sheet of its market maker, Alameda Research (Alameda), exposed the latter’s reliance on FTT’s illiquid token. Its former CEO, Sam Bankman-Fried (SBF), was later accused of allowing FTX to borrow unlimited quantities of FTX customer funds. Bankman-Fried New About FTX…
The post FTX Debtors Negotiate the Upgrade of Certain Creditors appeared on BitcoinEthereumNews.com.
FTX Debtors have agreed to a new Customer Shortfall Settlement following months of negotiations with FTX’s Committee of Unsecured Creditors, an ad hoc non-US customer committee, and other representatives. The court must approve the proposal that FTX Debtors (FTX) will file as part of their Amended Plan in December. Earlier this year, FTX.com and FTX US creditors filed customer property litigation, arguing they should be prioritized over unsecured creditors. The new plan follows FTX’s announcement to liquidate over $3 billion in crypto assets to make customers whole. FTX Debtor Chief Hails Creditor Agreement The amendment, if approved by the court, would see FTX.com and FTX US creditors receive 90% of the Debtors’ distributable assets over a new timeline. However, the Debtors expect that customers of FTX.com would sustain a greater percentage loss, and their final reimbursements would need to account for tax and other government regulations. Change in dollar value FTX tokens | Source: WSJ Still, the plan represents a milestone in the plan to make FTX customers whole, according to FTX’s restructuring chief, John Ray III. “The proposed settlement of the customer property issues is another major milestone in our case. [The] debtors and their creditors have created enormous value from a situation that easily could have been a near-total loss for customers.” Read more: FTX Collapse Explained: How Sam Bankman-Fried’s Empire Fell The bankruptcy estate has invited customer queries about the proposed Customer Shortfall Settlement. FTX Debtors will file the proposal in court on Dec. 16. FTX filed for bankruptcy on Nov. 11, 2022, after a leaked balance sheet of its market maker, Alameda Research (Alameda), exposed the latter’s reliance on FTT’s illiquid token. Its former CEO, Sam Bankman-Fried (SBF), was later accused of allowing FTX to borrow unlimited quantities of FTX customer funds. Bankman-Fried New About FTX…
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