Creditors Rally Behind FTX’s Reorganization Plan with 95% Approval Rate
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Defunct crypto exchange FTX said its amended reorganization plan had received strong preliminary approval from creditors entitled to vote, according to an August 22 press release.
The overwhelming support indicates that the plan will likely surpass the necessary approval thresholds under U.S. bankruptcy law.
According to an unofficial voting report, over 95% of creditors have already voted in favor of the plan, representing 99% of the claims by value. This backing includes customer classes from both FTX US and FTX.com.
The FTX Debtors today announced overwhelming support from Creditors for their Plan of Reorganization. Read about it here: https://t.co/tmEIi5z8AD
The reorganization plan, to be finalized by October 7, aims to fully compensate non-governmental creditors by paying 100% of their bankruptcy claims, plus interest.
FTX Chief Restructuring Officer and CEO John Ray III highlighted the plan’s innovative structure, noting that it effectively resolves complex disputes with various governmental and private stakeholders.
Although the reorganization plan has received broad support, some FTX customers updated the plan on August 2.
Specifically, they disagree with how the plan values their cryptocurrency holdings. Sunil Kavuri, a customer advocate, raised this concern.
CAHC has filed a objection to the FTX Plan
1) Plan is unconfirmable as a matter of law
2) Includes releases not in interest of the estate
3) Ignores property rights issue
4) Does not satisfy the best interest test pic.twitter.com/rpXxz0tmP2
These customers, along with a group of
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