Crypto News- FTX’s Reorganization Plan Receives Massive Creditor Backing

Crypto News- FTX’s Reorganization Plan Gets 95% Creditor Approval

Crypto News- The bankrupt crypto trading platform FTX has announced that its amended reorganization plan has received significant preliminary support from its creditors. This development marks a critical step in the company’s bankruptcy proceedings as it seeks to resolve its financial turmoil.

Majority of Creditors Support FTX’s Amended Reorganization Plan

FTX, along with its affiliated debtors, revealed that their amended reorganization plan filed with the United States Bankruptcy Court for the District of Delaware has achieved majority support from all classes of creditors eligible to vote. This includes creditors from both FTX US and FTX Dotcom. Unofficial voting reports indicate that over 95% of the creditors who cast their votes are in favor of the plan. This level of support translates to 99% of the voted claims by value.

Plan Expected to Meet Bankruptcy Code Acceptance Thresholds

FTX has reported that more than two-thirds of all solicited claims by voting value participated in the voting process. With such high participation, the company anticipates that the reorganization plan will meet the required acceptance thresholds under U.S. bankruptcy law. The final results of the voting will be submitted to the bankruptcy court before the confirmation hearing scheduled for October 7.

FTX CEO Highlights Innovative Aspects of the Reorganization Plan

John Ray III, FTX’s chief restructuring officer and CEO, emphasized that the plan’s structure ensures the return of 100% of bankruptcy claim amounts plus interest to non-governmental creditors. It also aims to resolve complex disputes with numerous governmental and private stakeholders. Ray expressed appreciation for the strong support and collaboration from stakeholders during this process.

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