Insolvent crypto exchange FTX is preparing to present a revised reorganization plan to the court in mid-December. The plan will likely alter the course of action for unsecured creditors.
Acknowledging varying viewpoints regarding the valuation and allocation of assets, the Committee of Unsecured Creditors emphasized the ability of the proposed plan to preserve equilibrium among the interests of all parties involved in the correspondence.
Nevertheless, any ongoing operations that may transpire during the bankruptcy proceedings, such as a possible acquisition by the financial services firm Perella Weinberg, will be duly presented to the court for approval through a motion to motion.
The Official Committee and prospective transaction participants are assessing ideas such as recovery rights tokens, which were alluded to in the letter from the FTX 2.0 Customer Ad Hoc Committee.
101 out of 130 affiliated companies of FTX have initiated a strategic evaluation of their worldwide assets in conjunction with the recent bankruptcy filing.
Maximizing recoverable value for stakeholders is the objective of the review. However, FTX provided clarification that “court approval is required before the engagement of Perella Weinberg.”
The Official Committee concludes the letter by expressing its eagerness to continue working with the FTX 2.0 Customer Ad Hoc Committee in the future months.
Gary Gensler, chairman of the United States Securities and Exchange Commission, speculated that the agency may sanction a resurrected FTX cryptocurrency exchange if the new leadership adheres to legal restrictions.
According to reports that prompted Gensler’s statement, Tom Farley, a former New York Stock Exchange president, was reportedly considering purchasing the insolvent cryptocurrency exchange founded by the convicted fraudster Sam Bankman-Fried.
