FTX Recovers Billions More Than It Owes Creditors, But Repayment Plan Still Faces Controversy
Collapsed crypto exchange FTX says it has billions of dollars more than is needed to repay creditors affected by its downfall. FTX forecasts that the total value of re cover ed assets will be between $14.5 and $16.3 billion, it said in a May 7 statement . That is more than enough to cover the firm’s debts, which stand at approximately $11 billion. Many Creditors Could Receive 118% Of Their Claimed Amounts “We are pleased to be in a position to propose a chapter 11 plan that contemplates the return of 100% of bankruptcy claim amounts plus interest for non-governmental creditors,” said John Ray, FTX’s new chief executive. The company’s repayment plan still needs approval by a bankruptcy court. Creditors holding claims of $50,000 or less, amounting to about 98% of the total, would receive approximately 118% of the amount of their allowed claims within 60 days after the effective date of the repayment plan, FTX said. The FTX Debtors today filed their ...
