when

Billion

<p>The post <a href="https://coinpedia.org/news/ftxs-16-billion-reorganization-plan-will-creditors-finally-get-their-due/" rel="noopener noreferrer nofollow">FTX $16 Billion Reorganization Plan: Will Creditors Finally Get Their Due?</a> appeared first on <a href="https://coinpedia.org" rel="noopener noreferrer nofollow">Coinpedia Fintech News</a></p>
<p>Good news for FTX creditors! FTX’s reorganization plan is on the brink of approval after securing substantial backing from its creditors. With 95% of creditors in favor, representing 99% of the claim value, the plan aims to distribute between $14.5 billion and $16.3 billion in recovered assets. This significant support demonstrates a general agreement among creditors, including those linked to FTX U.S. and Dotcom, ensuring a smoother resolution process.</p>
<p>This marks a crucial moment in their journey to address the fallout from their collapse in November 2022.</p>
<h2 class="wp-block-heading" id="h-key-provisions-of-the-reorganization-plan"><strong>Key Provisions of the Reorganization Plan</strong></h2>
<p>In a recent press <a href="https://www.prnewswire.com/news-releases/ftx-announces-overwhelming-support-from-creditors-for-plan-of-reorganization-302227961.html?tc=eml_cleartime" rel="noopener noreferrer nofollow">release</a>, the firm announced that the reorganization plan promises full repayment of claims, plus interest, to non-governmental creditors. It addresses various contentious issues to avoid prolonged legal disputes, aiming for a resolution by October 7, 2024, when the final vote counts will be announced. However, the plan also includes the payment of interest at up to 9% from the start of the Chapter 11 cases until distribution.</p>
<p>John J. Ray III, FTX’s CEO and Chief Restructuring Officer, expressed gratitude to all stakeholders and creditors for the large voting turnout showing support for the reorganization plan. The plan emphasized the firm’s commitment to returning 100% of bankruptcy claim amounts plus interest for non-governmental creditors.</p>
<h2 class="wp-block-heading" id="h-interest-payments-and-legal-battles-what-s-at-stake"><strong>Interest Payments and Legal Battles: What’s at Stake?</strong></h2>
<p>In short, the reorganization plan involves the distribution of almost all assets related to FTX’s bankruptcy, including those managed by entities like the Joint Official Liquidators of FTX Digital Markets Ltd (Bahamas) and the Securities Commission of The Bahamas. The recovery, driven by the realization of assets owned by Alameda Research and FTX Ventures, could reach up to $16.3 billion.</p>
<p>Having said that, FTX is also wrestling with a scoop of legal cases, including lawsuits against former executives. Notably, former CEO Sam Bankman-Fried was sentenced to 25 years in prison and fined $11 billion for financial fraud. Plus, FTX and its affiliate, Alameda Research, reached a $12.7 billion settlement with the CFTC to repay creditors. Skeptics question whether the plan can truly resolve the complex web of financial and legal issues facing FTX.</p>
<h2 class="wp-block-heading" id="h-the-final-countdown-october-s-crucial-hearing"><strong>The Final Countdown: October’s Crucial Hearing</strong></h2>
<p>With strong creditor support and significant asset recovery, FTX’s reorganization plan is set to bring a resolution to one of the most high-profile bankruptcies in the crypto world. The upcoming confirmation hearing in October will be the final step in securing the plan’s approval, paving the way for creditors to receive their due repayments and bringing closure to FTX’s troubled chapter.</p>
<p><strong>This news marks a bright spot for the cryptocurrency industry, potentially boosting investor confidence. Stay tuned for more updates!</strong></p>

FTX $16 Billion Reorganization Plan: Will Creditors Finally Get Their Due?

Table of Contents

CoinPedia News

Other articles published on Aug 22, 2024

Rumors of Binance’s Legendary CEO CZ’s Release, But Here is the Truth

American rapper Coolio comes back to life in the metaverse

Investors Drive MATIC Price Surge with Increased Activity

Fed Minutes Boost Bitcoin Price

Ethereum Co-Founder Proposes ‘Plurality’ to Enhance Decentralization and Crypto Governance Issues

Lido Finance Ventures Beyond Ethereum, Expands to BNB Chain

Join our free newsletter for daily crypto updates!