FTX to Pay Additional Compensation to Creditors
FTX announced on Tuesday that they intend to give at least 98% of their creditors a minimum of 118% of their allowed claims in their proposed reorganization plan.
They also plan to fully repay other creditors and provide additional compensation for the time value of their investments.
According to FTX CEO John J. Ray III, this plan has been made possible due to the company’s ability to return 100% of the bankruptcy claim amounts plus interest to non-governmental creditors.
The reorganization plan, which aims to distribute assets to FTX customers and creditors affected by the company’s collapse in 2022, will be a centralized process regardless of where their assets were located.
The estimated value of the available cash for distribution is between $14.5 billion and $16.3 billion, pending approval from the US Bankruptcy Court.
