FTX's reorganization plan to distribute over 100% of allowed claims to creditors

FTX, the now-defunct cryptocurrency exchange, published a press release to announce that it has recently filed an updated reorganization plan and disclosure statement with the United States Bankruptcy Court for the District of Delaware, marking 17 months since declaring Chapter 11 bankruptcy. According to the proposal, 98% of FTX creditors are set to receive a minimum of 118% of their approved claims in cash within two months of plan confirmation. The remaining creditors are expected to be fully compensated with 100% of their claims along with additional compensation, reflecting the time value of their investments. FTX anticipates that the total assets collected and converted to cash for distribution will range between $14.5 billion and $16.3 billion.