WILMINGTON, Del, Oct. 7, 2024
/PRNewswire/ -- FTX Trading Ltd. (d.b.a. FTX.com) and its
affiliated debtors ("FTX" or the "Debtors") today announced that
the United States Bankruptcy Court for the District of Delaware (the "Bankruptcy Court" or the
"Court") has confirmed FTX's Plan of Reorganization (the "Plan"),
less than two years after its historic bankruptcy filing.
Under the terms of the Plan, 98% of the creditors of FTX by
number will receive approximately 119% of the amount of their
allowed claims within 60 days after the effective date of the Plan,
subject to know-your-customer and other distribution requirements.
FTX projects that the total value of property collected, converted
to cash and available for distribution will be between $14.7 billion and $16.5
billion. This amount includes assets under the control of
the chapter 11 Debtors as well as assets under the control of the
Joint Official Liquidators of FTX Digital Markets, Ltd.
(Bahamas), the Administrators of
FTX Australia, the United States Department of Justice and dozens
of private parties that have cooperated in the recovery efforts.
The Debtors will separately announce in due course the Plan's
effective date and estimated first distribution date.
John J. Ray III, Chief Executive
Officer and Chief Restructuring Officer of FTX, said: "The
Court's confirmation of our Plan is a significant
milestone on our pathway to distributing cash to
customers and creditors. Today's achievement is only
possible because of the experience and
tireless work of the team of
professionals supporting this
case, who have recovered billions of dollars
by rebuilding FTX's books from the
ground up and from there marshaling assets from
around the globe. It also
reflects the strong collaboration we have had
with governments and agencies from around the world that
share our goal of mitigating the wrongdoings
of the FTX insiders."
Mr. Ray added: "Looking ahead, we are poised
to return 100% of bankruptcy claim amounts plus interest for
non-governmental creditors through what will be the largest
and most complex bankruptcy estate asset distribution in
history. The estate is working to finalize arrangements to make
distributions to creditors across more than 200 jurisdictions
around the world. In preparation for this process, we
are finalizing agreements to retain specialized
agents to assist us in getting recoveries to customers around
the world as safely and expeditiously as possible. I want to
thank all customers and creditors of FTX for their patience
throughout this process."
Bankruptcy Court filings, including the Plan, and other
documents related to the Court proceedings are available at
https://cases.ra.kroll.com/FTX/.
Advisors
The FTX Debtors are represented by Sullivan & Cromwell LLP
as legal counsel and are assisted by Alvarez & Marsal North America, LLC as financial advisor,
Perella Weinberg Partners LP as investment banker, Quinn Emanuel Urquhart & Sullivan, LLP as
special counsel and Landis Rath
& Cobb LLP as Delaware
counsel.
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SOURCE FTX