Announcement of Generous Repayment Plan for FTX Creditors.
FTX creditors received promising news with the unveiling of FTX’s amended reorganization plan, submitted recently. The plan outlines intentions to allocate over 118% of approved claims to a significant portion, approximately 98%, of its creditors. Additionally, the remaining creditors are slated to receive full compensation, accompanied by substantial added benefits reflecting the time value of their crypto assets. The exchange anticipates a substantial sum ranging between $14.5 billion to $16 billion earmarked for distribution.
At CoinFactiva they think that while the prospect of receiving 18% more than the owed amount is certainly appealing, it may not fully offset the absence of the assets themselves, particularly considering the significant appreciation in their value over the past two years. At the time of the exchange’s collapse, Bitcoin traded at just under $16,000, with FTX possessing only 0.1% of the deposited amount. Since then, Bitcoin’s price has nearly quadrupled.
However, it’s crucial to underscore that the plan remains subject to finalization and approval by the US Bankruptcy Court. Notably, only creditors with claims below $50,000 are designated to receive the 118% compensation, contingent upon court endorsement. Repayment procedures are slated to commence within 60 days following the plan’s approval and implementation.
