FTX Creditors Committee characterized the platform’s management proposed a draft reorganization plan as an “idea”, noting the lack of formal negotiations to discuss it.
Presented on July 31, the plan involves restarting the offshore exchange with access for users outside the United States.
The company intends to separate “dotcom customers” from the rest. According to the document, they will receive “a pro rata share of the proceeds from the pool of assets associated with FTX.com.”
The firm also plans to create a separate entity to manage the restart of the offshore exchange, which will not be available in the United States.
Representatives of the lenders emphasized that FTX lawyers should make more efforts to communicate. They were “disappointed” by the lack of discussion of the “reboot plan”.
Revealed disagreements may delay restructuring plans, as creditors will have a say in the final path of development of the group of companies. The committee stressed that any formal plan would place control of FTX in the hands of “qualified parties” chosen by its representatives.
Lawyers stated the need to create a regulatory-compliant recovery token and restart the platform. They threatened to sue if their position was not taken into account.
So far, this has been avoided, although “FTX’s management is not doing enough to maximize customer recovery,” the committee stressed.
In particular, the claims concerned the lack of investment of $2.6 billion in US Treasury securities, which could compensate for the high fees of consultants.
The lawyers also provided a “plan” to maximize the remaining crypto assets of FTX and its various affiliates. It involves gaining control, hedging, and selling organizations’ “vast coin holdings”.
The committee of creditors has criticized FTX executives for not putting forward a plan to earn money from the investment of the remaining cryptocurrencies until recently.
The group also called offers to sell certain venture assets held by bankrupt companies “suspicious.” In addition, the committee criticized spending over $330 million on specialist fees.
In January 2023, acting head of FTX John Ray first revealed that a dedicated working group was looking into the possibility of restarting the platform.
In April, the reorganization of the exchange with the resumption of work instead of liquidation or sale at hearings in court was allowed by lawyers from Sullivan & Cromwell.
The schedule presented assumed that the detailed plan would be submitted in the third quarter. At the same time, the idea of reviving FTX was expressed by the former head of institutional sales Zane Tackett. In his opinion, the platform should resume offering all pre-crash products by adding a tokenized claims market.
In a March presentation, representatives of the exchange estimated the total shortage of funds to cover the claims of customers and creditors at $8.7 billion, of which about $1.6 billion is in bitcoin.
Recall that in June, the new management of FTX returned $7 billion in liquid assets.
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2023-08-02 11:56:28
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