FTX to pay out at least 118% of recognized claims to 98% of its creditors

FTX Trading, commonly known as FTX.com, and its affiliated debtors have announced a major development in their bankruptcy proceedings. According to the newly filed Plan of Reorganization, 98% of FTX creditors are expected to receive at least 118% of their allowed claims in cash within 60 days of the plan’s effectiveness.

The remaining creditors are set to receive 100% of their claims and additional compensation for the time value of their investments. FTX’s reorganization plan is subject to approval by the Bankruptcy Court, according to a press release published today.

The plan, filed 17 months after FTX’s Chapter 11 bankruptcy in Delaware, aims to distribute nearly all assets associated with FTX at the time of its collapse in November 2022.

FTX estimates that the total value of recovered and liquidated assets available for distribution is between $14.5 billion and $16.3 billion, including assets from various sources under both Chapter 11 debtors and multiple liquidators and agencies.

Despite Bitcoin and Ethereum’s shortfall at the time of filing, FTX has not benefited from the appreciation of these missing tokens but has focused on other recoverable values to repay creditors.

John J. Ray III, CEO and Chief Restructuring Officer of FTX, expressed gratitude towards the governmental agencies and other stakeholders for their cooperation in the recovery process.

“We are pleased to be in a position to propose a Chapter 11 plan that contemplates the return of 100% of bankruptcy claim amounts plus interest for non-governmental creditors,” he stated.

“I want to thank all the customers and creditors of FTX for their patience throughout this process,” he added.

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