FTX to present the revised reorganization plan in mid-December

The Official Committee of Unsecured Creditors has written a response to the FTX 2.0 Customer Ad Hoc Committee, providing insights on the details of the revised reorganization plan. This event, scheduled for mid-December, is expected to change the fate of unsecured creditors.

As bankruptcy proceedings continue, closed exchange FTX is preparing to file an updated reorganization plan with the court in mid-December.

Acknowledging the different views on asset valuation and distribution, the official committee in the letter highlighted the proposed plan to strike a balance between stakeholders.

But ongoing operations, including that of financial services firm Perella Weinberg, will be made public with the court approving a potential sale during the bankruptcy process. Concepts such as Recovery Rights Tokens mentioned in the FTX 2.0 Client Ad Hoc Committee letter are currently being evaluated by both the official committee and trading participants.

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According to the latest bankruptcy filing, FTX and 101 of its 130 affiliates announced that they had begun a systematic review of their global assets. The evaluation is an attempt to maximize the value that can be returned to the stakeholders. However, FTX clarified that “Perella Weinberg's involvement is subject to court approval.”

The letter ends with the official committee expressing its desire to continue cooperation with the FTX 2.0 Client Interim Committee in the coming months.

Gary Gensler, the head of the US Securities Regulatory Commission, has indicated that if the new management adheres to the legal boundaries, the reformed FTX crypto exchange may receive SEC approval. Gensler's comments followed reports that NYSE's former president, Tom Farley, may be considering buying the bankrupt crypto exchange originally from accused fraudster Sam Bankman-Fried.

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