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FTX’s Court-Approved Chapter 11 Plan to Take Effect January 3, 2025
In a significant development, FTX and its affiliated debtors have announced that their Chapter 11 reorganization plan will officially come into effect on January 3, 2025. This marks a major milestone in the ongoing recovery efforts, with repayments expected to begin within 60 days of this date.
The reorganization plan, which was finalized in October 2024, garnered overwhelming support from creditors, who are set to receive an average of 119% of their claims’ value. Moreover, some may even recover up to 140% in cash. The potential total recovery amount is estimated to range between $14.7 billion and $16.5 billion.
The company’s CEO, John J. Ray III, praised the team for their meticulous efforts in recovering billions of dollars, stating that they have reached this critical point. He emphasized that FTX is now well-positioned to begin reimbursing funds to customers and creditors, urging all claimants to ensure timely completion of necessary steps to avoid potential delays.
As part of the distribution process, FTX has partnered with two crypto custodians – BitGo and Kraken – to facilitate the disbursement of recovered funds to both retail and institutional clients, as well as other eligible recipients.
Source: cryptopotato.com
