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The doc, dated July 31, 2023, outlines the draft plan of reorganization for FTX Buying and selling Ltd. and its affiliated debtors, collectively known as “the Debtors.”
The Debtors have determined to file this draft plan at an early stage to facilitate creditor suggestions and consensual decision of sure points. They anticipate to amend the plan in response to suggestions and file an amended plan of reorganization within the fourth quarter of 2023.
Key facets of the plan embody disputes relating to the possession of belongings held on the FTX.com and FTX US exchanges, identification of three major restoration swimming pools equivalent to segregated belongings, and recognition of particular “shortfall” claims by the FTX.com and FTX US exchanges for unauthorized borrowing or misappropriation of belongings.
The draft additionally covers the cancellation of intercompany claims, consolidation of the estates of many of the Debtors, subordination of sure claims to the pecuniary losses of shoppers and collectors, and extinguishment of FTT claims together with different fairness pursuits.
Moreover, the doc highlights the liquidation of the Debtors’ estates, with distributions to be paid to clients and collectors in money, topic to sure voluntary elections in reference to a restart of an offshore trade or in any other case.
The draft plan doesn’t purport to resolve sure open questions beneath dialogue among the many Debtors, Consulting Events, and different stakeholders.
This draft plan of reorganization for FTX Buying and selling Ltd. addresses advanced authorized and monetary issues, together with asset swimming pools, therapy of claims, and liquidation procedures. It displays the present stage of negotiations and investigations and serves as a foundation for additional discussions and amendments.
Stakeholders are inspired to assessment your complete draft plan, as further modifications and clarifications are anticipated within the coming months. The doc’s detailed strategy emphasizes the significance of transparency and collaboration in managing the multifaceted challenges confronted by the Debtors and their stakeholders.
Picture supply: Shutterstock
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