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.”Â
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.
SOURCE FTX
WANT YOUR COMPANY’S NEWS FEATURED ON PRNEWSWIRE.COM?
440k+
Newsrooms &
Influencers
9k+
Digital Media
Outlets
270k+
Journalists
Opted In