FTX to submit revised reorganization plan in mid-December

The Official Committee of Unsecured Creditors has written a reply to the FTX 2.0 Customer Ad Hoc Committee, providing insights into the details of its proposed amended reorganization plan. Scheduled for mid-December, this event is expected to reshape the fate of unsecured creditors.

As its bankruptcy proceedings progress, shuttered exchange FTX is preparing to present an updated reorganization plan to the court in mid-December. 

Recognizing differing perspectives on asset valuation and distribution, the Official Committee, in the letter, highlighted the proposed plan’s capacity to maintain a balance among stakeholders’ interests.

However, ongoing activities, including a potential acquisition by financial services firm Perella Weinberg, that may unfold during the bankruptcy proceedings will be formally submitted via a motion for court approval to sell. Concepts like recovery rights tokens, referenced in the FTX 2.0 Customer Ad Hoc Committee’s letter, are presently under evaluation by both the Official Committee and potential transaction participants.

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As part of the recent bankruptcy filing, FTX and 101 of the 130 affiliated companies announced the launch of a strategic review of their global assets. The review is an attempt to maximize recoverable value for stakeholders. However, FTX clarified that “the engagement of Perella Weinberg  is subject to court approval.”

The letter concludes with the Official Committee expressing its keenness to sustain collaboration with the FTX 2.0 Customer Ad Hoc Committee in the upcoming months.

The head of the U.S. securities regulator, Gary Gensler, has suggested a revived FTX crypto exchange could receive SEC approval, provided the new leadership sticks to legal boundaries. Gensler’s remarks followed reports that Tom Farley, ex-president of NYSE, could be considering buying the bankrupt crypto exchange initially founded by convicted fraudster Sam Bankman-Fried.

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