- The cooperation between FTX Digital’s Joint Official Liquidators and the Chapter 11 Debtors in navigating the intricate FTX bankruptcy case.
- This collaborative effort underscores a commitment to transparency and fairness in addressing creditor claims and distributing assets, ultimately aiming to resolve the bankruptcy in an efficient manner.
In a recent meeting of FTX Digital’s Joint Official Liquidators held in the Bahamas, plans were outlined regarding the timeline for repaying creditors, with a target set to initiate repayments by the conclusion of 2024.
The bankruptcy proceedings of FTX comprise two distinct processes occurring concurrently: the Chapter 11 bankruptcy underway in a Delaware court in the United States and the official liquidation of FTX Digital, the FTX subsidiary situated in the Bahamas.
This dual approach stems from the intricate nature of FTX’s financial records, which have been described as “hopelessly commingled.” However, cooperation between both facets of the estate has been established, allowing creditors to submit their claims to either entity, ensuring equitable distribution of assets.
Both the Chapter 11 Debtors and the Joint Official Liquidators share a common objective to facilitate the initial disbursement of funds to creditors with recognized claims and satisfactory Know Your Customer (KYC) documentation by the culmination of 2024. This collaborative effort underscores a commitment to expeditiously address creditor concerns and initiate the restitution process.
Creditors have been granted the opportunity to lodge their claims via FTX’s claims portal since March 1, coinciding with the portal’s activation. Initially, the deadline for creditors to select one of the two bankruptcy proceedings and file a claim was slated for May 15. However, recent developments suggest an extension of this deadline to at least June 2024, providing creditors with additional time to engage with the process effectively.
Claims submitted to the Bahamian jurisdiction, akin to those filed under Chapter 11, will be assessed based on their valuation as of November 11, 2022, representing the inception of the bankruptcy claim period. This valuation criterion ensures a standardized approach to determining the value of claims across both bankruptcy processes, fostering transparency and fairness in the evaluation process.
FTX Bankruptcy Estate Nears Milestone in Creditor Repayment Plan
The coordinated efforts between FTX Digital’s Joint Official Liquidators and Chapter 11 Debtors signal progress toward resolving the complex FTX bankruptcy case. With a shared objective to commence creditor repayments by the end of 2024, the estate aims to provide much-needed relief to creditors affected by the bankruptcy. As the claims submission deadline is anticipated to extend, stakeholders await further developments in the meticulous process of adjudicating claims and distributing assets.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
