Now go! FTX plans to return $6 billion to creditors: see schedule

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Now go! FTX plans to return $6 billion to creditors: see schedule
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After careful consideration of FTX’s reorganization plan, the exchange will ultimately distribute $6 billion to users as part of the repayment plan. According to the company, the plan will occur in stages and distribution should begin between 4 and 8 weeks from approval.

Notably, the beneficiaries are entities that were affected when the company imploded in 2022. As Todaysgist reported, the restructuring plan received the support of more than 94% of creditors. Even the remaining 6% did not vote against but refrained from sending their votes.

FTX has received strong support from lenders, which sets the tone for the distribution of $6.83 billion to all impacted traders and users. This is the amount owed to the approximately 94% of voting creditors who approved the plan.

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In total, the approximately 66 creditors committee voted “yes”, approving the plan. With this, FTX takes a crucial step towards distributing creditors’ assets after almost two years.

Unexpected support from creditors

According to the Kroll Restructuring Administration, responsible for soliciting votes, almost all classes of creditors supported the proposal. The only two classes that did not directly approve did not submit their votes, which the company sees as tacit approval.

The success so far with the plan has led observers to say the confirmation hearing scheduled for Oct. 7 is just a formality. That is, the court should probably grant approval after this consensus.

According to analyst Tom Dunleavy, distribution could begin in the next 4 to 8 weeks, counting from court approval. By all means, the distribution must be finalized before the end of this year for all creditors who have registered their requests.

For the allocation, 89.1% of creditors that fall into the “U.S. customer rights claims” category will receive $60.99 million. Additionally, 95.88% of creditors in the “dotcom convenience claims” class will receive $223.59 million in claims.

However, it is worth noting that these claims were calculated based on the market value of the cryptocurrencies when they were registered. Therefore, many creditors may suffer losses due to the appreciation of cryptocurrencies during FTX’s inactivity period.

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In addition to this plan, John Ray III, CEO and chief restructuring officer at FTX, noted that the priority is to fully reimburse non-governmental creditors. In this sense, the exchange seeks to return 100% of its claims plus interest to this group, while resolving complex disputes with government and private entities.