October 7, 2024, Wilmington, Delaware /PRNewswire/ — Less than two years after filing for bankruptcy, FTX Trading Ltd. (d.b.a. FTX.com) and its affiliated debtors (collectively, “FTX” or the “Debtors”) announced today that the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court” or the “Court”) has confirmed FTX’s Plan of Reorganisation (the “Plan”).
Subject to know-your-customer and other distribution criteria, 98% of FTX’s creditors by number will receive roughly 119% of the value of their authorised claims within 60 days of the Plan’s effective date. According to FTX, the overall estimated worth of the property that will be gathered, turned into cash, and distributed will fall between $14.7 billion and $16.5 billion. In addition to assets controlled by the Joint Official Liquidators of FTX Digital Markets, Ltd. (Bahamas), the Administrators of FTX Australia, the United States Department of Justice, and numerous private parties that have assisted in the recovery efforts, this amount also includes assets under the control of the chapter 11 debtors. Separately, the Debtors will declare incourse the Plan’s effective date and estimated first distribution date.
Chief Executive Officer and Chief Restructuring Officer of FTX, John J. Ray III, stated: “We are getting closer to paying out funds to creditors and customers as a result of the Court’s validation of our Plan.The knowledge and tenacity of the specialists backing this case, who rebuilt FTX’s books from the ground up and then assembled assets from all over the world, are the sole reasons why today’s accomplishment is feasible.It also illustrates our close cooperation with governments and organisations worldwide who share our objective of lessening the misconduct of the FTX insiders.”
“Going forward, we anticipate returning to non-governmental creditors 100% of their bankruptcy claim amounts plus interest through the largest and most intricate bankruptcy estate asset distribution in history,” Mr. Ray continued. The estate is putting the finishing touches on plans to distribute assets to creditors in more than 200 countries worldwide. We are finalising contracts to hire specialised agents to help us deliver recoveries to consumers worldwide as quickly and safely as possible in advance of this process.I would like to express my gratitude to all of FTX’s clients and creditors for their patience during this procedure.”
Bankruptcy Court filings, including the Plan, and other documents related to the Court proceedings are available at https://cases.ra.kroll.com/FTX/.
