Bankrupt crypto trading platform FTX claims its amended reorganization plan gained overwhelming preliminary support from creditors entitled to vote.
In an announcement, FTX and its affiliated debtors said that its amended reorganization plan filed with the United States Bankruptcy Court for the District Court of Delaware received majority support from all classes of creditors that were qualified to vote, including customer classes in FTX US and FTX Dotcom.
Citing unofficial voting reports, FTX said that over 95% of creditors who had already submitted their votes favored the plan. The firm said that this represents 99% of voted claims by value.
Reorganization plan to exceed the required threshold of acceptance
FTX also added that over two-thirds of all solicited claims by voting value participated in the solicitation process by the debtors. With the results, FTX said that the plan would likely achieve the required thresholds of acceptance under the US bankruptcy code.
The company also said it will file the final vote results with the bankruptcy court before the confirmation hearing on Oct. 7.
FTX chief restructuring officer and CEO John Ray III said that the robust voting participation highlights strong support for the reorganization plan. The executive said:
“Importantly, the Plan’s innovative structure provides for the return of 100% of bankruptcy claim amounts plus interest for non-governmental creditors and resolves complex disputes with dozens of governmental and private stakeholders.”
Ray also said that FTX will continue to work with creditors and the court in the coming weeks and expressed gratefulness for the collaboration with its stakeholders.
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FTX customers object to the reorganization plan
On Aug. 2, FTX filed the amended reorganization plan. Weeks later, Sunil Kavuri, an activist representing FTX customers, posted on Aug. 14 that his direct messages are full of customers unhappy with the valuation of the crypto holdings within the plan.
Kavuri and a group of FTX creditors previously filed an objection to FTX’s reorganization plan. The creditors argued that being reimbursed with cash would create a taxable event that would cause undue costs to creditors.
In a previous Cointelegraph interview, Kavuri claimed that the bankruptcy plan violates creditors’ property rights. The FTX creditor claims that FTX is obligated to return the coins as they were.
When FTX filed for bankruptcy on Nov. 2, 2022, the global market capitalization for the entire crypto industry was $840 billion. Currently, the collective market cap of the crypto industry sits at $2.1 trillion, showing a 161% increase in value.
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