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More than 94% of Dotcom’s voting creditors support FTX reorganization plans.
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It is expected that 98% of creditors will receive at least 118% in cash of the claim value.
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The confirmation hearing for the plan will be held on October 7.
The FTX cryptocurrency exchange, which is in dire straits, has received a lot of support for its proposed reorganization. Kroll Restructuring Administration (the restructuring administrator) reported that more than 94% of Dotcom’s voting creditors expressed support.
The results were revealed in a Monday filing. It reflects a strong agreement among different classes of creditors and paves the way for a potential recovery during the ongoing bankruptcy proceedings.
The filing states that 94.48 percent of creditors in the class “dotcom customers entitlement claims”, representing approximately $6.83 Billion in claims, support this plan. This shows that customers who have suffered significant losses since the collapse of the exchange in Q4 2022 are strongly behind this plan.
Around 89.1% also voted in favor of the class “U.S. The “customer entitlement claims” category, which includes claims totaling approximately $60.99 million, was also overwhelmingly positive. The “dotcom comfort claims” class had even more support, with 95.88% of the votes in favor, which represents claims worth $223.59 millions.
Two classes of creditors, despite not having cast ballots, are presumed to accept the plan. In the proposed bankruptcy plan approximately 98% creditors are expected receive at least 118% in cash of their claim values. The claims are based on the cryptocurrency values at the bankruptcy date in November 2022.
The restructuring team indicated in August that there was a positive response to the plan, with more than two-thirds participating in the vote.
FTX will also submit the final results of the voting to the United States Bankruptcy Court of the District of Delaware prior to a confirmation hearing that begins on October 7. During this hearing, stakeholders are expected to finalize the next steps of FTX’s recovery.
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