Yesterday on July 31, FTX and FTX Debtors filed a plan to restart the crypto exchange to the US Bankruptcy Court. 3 key points mentioned in the reorganization plan are:
- All non-customer claims (such as IRS) will be subordinated
- FTT claims are zeroed
- Offshore exchange restart to compensate customer shortfalls
According to John J. Ray III, Chief Restructuring Officer of the FTX Debtors, said: “We are pleased today to deliver on our commitment to file the Plan at this relatively early stage – before the expiration of the customer bar dates, the completion of our pending investigations and the preparation of a disclosure statement.”
They also want to receive feedback from creditors to further discuss open issues in the Plan with stakeholders, and file an amended plan and a disclosure statement in the fourth quarter of 2023. All aims to achieve a consensual plan and emergence from bankruptcy.
Overall, the plan is a proposed global settlement and good-faith compromise of an exceptionally large and complicated collection of claims that FTX is facing.
This is the latest move of the takeover team to revive and create more revenue for FTX based on available resources, making up for a deficit of up to $8.7 billion. The exchange at the beginning of July launched an online claim portal that allows users to provide information to claim properties, with the filing deadline of September 30.
The price of FTT is fluctuating wildly after this news, despite being deemed worthless by FTX.