FTX Charts Path Out of Bankruptcy with New Reorganization Plan

• FTX Estate Submits Proposal to Exit Bankruptcy
• Bankruptcy Plan Expected By Mid-December
• New Proposal Classifies Claims Based on Priority
• Plan Designed to Maximize Distribution to All Creditors
• Expectations of Opposition
• FTX's Plan to Return Customer Funds

FTX Estate Submits Proposal to Exit Bankruptcy

A recent filing reveals that the collapsed cryptocurrency entity, FTX$3.28 -5.38%, has put forth a proposal aiming to bring an end to its bankruptcy. The proposal was submitted to a Delaware court this past Saturday. FTX, established by Sam Bankman-Fried, faced a downfall in November 2022 shortly following revelations regarding the instability of its trading unit, Alameda's, financial position.

Bankruptcy Plan Expected By Mid-December

The bankruptcy plan was anticipated to be released by December 16th, following earlier preliminary proposals. These initial plans divulged intentions to refund up to 90% of the funds belonging to the creditors.

New Proposal Classifies Claims Based on Priority

In the recently proposed plan, the claims made by creditors and customers are categorized according to the precedence the estate plans to allot them. Furthermore, the claims' worth will be computed based on the asset prices on the date when the company filed for bankruptcy.

Plan Designed to Maximize Distribution to All Creditors

In an independent statement, it was announced by the estate that the proposed plan was methodically constructed to not only maximize but also effectively distribute the value to every creditor involved.

Expectations of Opposition

As with other high-profile cases of cryptocurrency bankruptcy, this plan is predicted to encounter resistance from various creditor groups until it obtains approval from the court. A hearing date for the plan has been scheduled for 2024.

FTX's Plan to Return Customer Funds

Contrary to expectations, FTX has plans to refund 90% of the customer funds, but there might be a certain catch involved in this decision. Detailed information about this matter is anticipated to be released soon.

Edited by Jonathan Stoker