A Chinese creditor representing a group of over 300 other creditors has filed an objection to a recent initiative by FTX concerning the potential loss of claims in certain restricted jurisdictions.
Chinese Creditor's Objection
Creditor Weiwei Ji submitted an objection to the Delaware Bankruptcy Court on behalf of over 300 Chinese FTX creditors. Despite being a tax resident of Singapore, Ji stated he was categorized as a Chinese creditor due to his Chinese passport.
FTX's Payment Limitation Plan
FTX identified creditor claims totaling $800 million across 49 potentially restricted jurisdictions, with China accounting for 82% of the amount. FTX's latest plan suggests engaging local legal experts to assess the feasibility of compliant distributions in these regions.
Legal Arguments of Creditors
Ji's objection points out that FTX claims denominated in U.S. dollars could be lawfully distributed to Chinese creditors through established channels, such as Hong Kong-based accounts. He emphasized that distributing claims poses no legal risk and is a necessary step under the bankruptcy process.
The objection raised by the Chinese creditor highlights the complex legal and financial issues faced by companies undergoing bankruptcy and their creditors. The court proceedings remain ongoing.
