Cointelegraph reported that FTX creditors expressed their “deep disappointment” with the exchange’s initial bankruptcy exit plan, claiming that the plan was overlooked by FTX’s restructuring team. Despite repeated requests and promises from the Official Committee on Unsecured Creditors (UCC), the group stated that they were not given the opportunity to hold a meeting with FTX to discuss the draft Chapter 11 plan.
FTX Creditors Express Frustration Over Exchange’s Bankruptcy Exit Strategy
On August 1, FTX creditors tweeted that the exchange had submitted a restructuring plan, which included several key elements. Firstly, all non-customer claims, such as those from the IRS, would be classified as secondary. Secondly, there would be a zero claim amount for FTX’s native token, FTT. Lastly, FTX would restart its foreign exchange operations to compensate for the customer gap.
The proposed restructuring plan revealed that in addition to establishing a “foreign exchange company,” the current FTX team was considering creating a new trust company called “FTX Ventures Trust.” This trust would be responsible for holding FTX’s investments in private startups and digital tokens that the exchange did not plan to sell immediately after exiting bankruptcy. The primary purpose of this trust would be to manage these long-term investments and gradually distribute cash from them over time.
FTX had not yet decided whether the trust would be owned by FTX’s bankruptcy assets or traded separately after bankruptcy. The ultimate goal was to find a way to maximize the value of these illiquid investments that FTX administrators could not easily sell following bankruptcy.
Additionally, FTX’s CEO, John J. Ray III, expressed the exchange’s hope to revise the plan in collaboration with creditors by the third quarter of 2023 and filed a disclosure statement in the fourth quarter.
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