FTX to submit revised reorganization plan in mid-December

The Official Committee of Unsecured Creditors has written a reply to the FTX 2.0 Customer Ad Hoc Committee, providing insights into the details of its proposed amended reorganization plan. Scheduled for mid-December, the plan is expected to reshape the fate of unsecured creditors.

In the letter, recognizing differing perspectives on asset valuation and distribution, the Committee of Unsecured Creditors highlighted the proposed plan’s capacity to maintain a balance among stakeholders’ interests.

However, ongoing activities, including a potential acquisition by financial services firm Perella Weinberg that may unfold during the bankruptcy proceedings, will be formally submitted via a court motion for approval. Concepts like recovery rights tokens — referenced in the FTX 2.0 Customer Ad Hoc Committee’s letter — are presently under evaluation by both the Official Committee and potential transaction participants.

Related: US crypto firms spent more on lobbying in 2023 than before FTX collapse: Report

As part of the recent bankruptcy filing, FTX and 101 of its 130 affiliated companies announced the launch of a strategic review of their global assets. The review is an attempt to maximize recoverable value for stakeholders. However, FTX clarified that “the engagement of Perella Weinberg is subject to court approval.”

The letter concludes with the Official Committee expressing its eagerness to sustain collaboration with the FTX 2.0 Customer Ad Hoc Committee in the coming months.

The chair of the United States Securities and Exchange Commission, Gary Gensler, has suggested a revived FTX crypto exchange could receive the agency’s approval, provided the new leadership sticks to legal boundaries. Gensler’s remarks followed reports that Tom Farley, ex-president of the New York Stock Exchange, could be considering buying the bankrupt crypto exchange initially founded by convicted fraudster Sam Bankman-Fried.

Magazine: Expect ‘records broken’ by Bitcoin ETF: Brett Harrison (ex-FTX US), X Hall of Flame