FTX's Amended Reorganization Plan Details Revealed by Unsecured Creditors Committee
Summary:
In a response to the FTX 2.0 Customer Ad Hoc Committee, the Official Committee of Unsecured Creditors provided insights into their proposed amended reorganization plan. This plan, set to be presented in December, may impact unsecured creditors. Potential deals including a likely acquisition by Perella Weinberg are being assessed. Alongside the recent bankruptcy filing, FTX and 101 affiliated companies have begun a strategic review of their global assets to maximize possible recovery value. The U.S. securities regulator's chief, Gary Gensler suggested the marijuana exchange may receive SEC approval if they adhere to legal boundaries.
In a response to the FTX 2.0 Customer Ad Hoc Committee, the Official Committee of Unsecured Creditors has discussed their upcoming amended reorganization plan which is set to be presented mid-December, possibly altering the scenario for unsecured creditors. As the bankruptcy proceedings of the defunct exchange, FTX, unfold, an updated restructuring plan is in the works for a December submission. The Official Committee's response sheds light on the plan's capacity for attaining equilibrium among the differing views on asset valuation and allocation. Meanwhile, ongoing deals such as a likely buyout by Perella Weinberg will be presented through a court approval motion during the bankruptcy procedure. Ideas like recovery rights tokens mentioned in the FTX 2.0 Customer Ad Hoc Committee's note are presently being assessed by both the Official Committee and potential deal participants. Related: In 2023, US crypto companies' lobbying expenditure escalated post FTX's downfall: A study states. Along with the recent bankruptcy filing, FTX along with 101 companies from its total 130 affiliates, declared a strategic assessment of their worldwide assets to leverage maximum recuperation value for stakeholders. Emphasizing that Perella Weinberg's involvement is conditional on court's consent, FTX provided this clarification.The letter from the committee ends on a note of eagerness to continue its collaboration with FTX 2.0 Customer Ad Hoc Committee in the future. Gary Gensler, the U.S. securities regulator's chief, implied that a renewed FTX crypto exchange might pass SEC inspection if the new management sticks to the law. This suggestion comes after the news of Tom Farley, the former president of NYSE, contemplating acquiring the bankrupt crypto exchange primarily set up by the now-convicted Sam Bankman-Fried. Magazine: Bitcoin ETF will 'break records', predicts Brett Harrison, former head of FTX US, X Hall of Flame.
Published At
12/7/2023 3:39:28 PM
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