FTX's modified reorganization plan has gotten widespread approval from creditors. Over 95% of voting creditors, or 99% of claims by value, have supported the proposal. This robust endorsement is a huge step forward for FTX's reorganization efforts.
The proposal intends to fully repay non-governmental creditors while also expeditiously resolving legal issues. It describes the collection and distribution of assets totaling $14.5 to $16.3 billion. Major creditors might get up to 9% interest on their claims.
FTX's CEO, John J. Ray III, praised the high voter turnout. He underlined the plan's novel structure and the ability to refund 100% of bankruptcy claim amounts plus interest.
However, the exchange is still facing legal hurdles. Former CEO Sam Bankman-Fried received a 25-year jail sentence and a $11B fine. The business also reached a $12.7B settlement with the CFTC.
The confirmation hearing will take place on October 7, 2024. FTX intends to file final vote results with the Delaware Bankruptcy Court by this date. This step moves FTX closer to releasing funds to clients and finishing the Chapter 11 procedure.
