- Reorganization Plan Exceeds Required Acceptance Threshold
- FTX Customers Object to Reorganization Plan
- Market Changes Since Bankruptcy
Bankrupt crypto trading platform FTX claims its amended reorganization plan gained overwhelming preliminary support from creditors entitled to vote.
Reorganization Plan Exceeds Required Acceptance Threshold
In an announcement, FTX and its affiliated debtors said that its amended reorganization plan filed with the United States Bankruptcy Court for the District Court of Delaware received majority support from all classes of creditors that were qualified to vote, including customer classes in FTX US and FTX Dotcom. Citing unofficial voting reports, FTX said that over 95% of creditors who had already submitted their votes favored the plan. This represents 99% of voted claims by value. Two-thirds of all solicited claims by value participated in the solicitation process by the debtors, indicating that the plan will likely achieve the required thresholds of acceptance under the US bankruptcy code.
FTX Customers Object to Reorganization Plan
On Aug. 2, FTX filed the amended reorganization plan. Weeks later, activist representing FTX customers, Sunil Kavuri, posted on Aug. 14 that his direct messages are full of customers unhappy with the valuation of the crypto holdings within the plan. Kavuri and a group of FTX creditors previously filed an objection to FTX’s reorganization plan, arguing that being reimbursed with cash would create a taxable event that would cause undue costs to creditors.
Market Changes Since Bankruptcy
When FTX filed for bankruptcy on Nov. 2, 2022, the global market capitalization for the entire crypto industry was $840 billion. Currently, the collective market cap of the crypto industry sits at $2.1 trillion, showing a 161% increase in value.
FTX will continue to work with creditors and the court in the coming weeks and expressed gratefulness for the collaboration with its stakeholders.
