Here’s why FTX repayment won’t happen tomorrow
The post Here’s why FTX repayment won’t happen tomorrow appeared on BitcoinEthereumNews.com. Despite social media rumours suggesting an FTX reimbursement by September 30, customers will have to wait an additional week for any updates on repayments. Before FTX can disburse any creditor funds, the court will have to approve its wind-down plan, with the next court hearing scheduled for October 7. FTX is waiting on court approval for its reorganization plan When FTX filed for bankruptcy protection in November 2022, and CEO Sam Bankman Fried resigned, John Ray III, a long-time bankruptcy litigator, took over the reins to try and fix the mess. On May 7, 2024, the exchange filed its Chapter 11 Plan of Reorganization and a disclosure statement, revealing that it owed about $11.2 billion to its customers. The company estimated it could distribute between $14.5 billion and $16.3 billion to pay its creditors and customers. The plan also included details on supplementary interest payments that could be made once all claims are paid in full. At the time, John Ray commented: We are pleased to be in a position to propose a Chapter 11 plan that contemplates the return of 100% of bankruptcy claim amounts plus interest for non-governmental creditors. ~John Ray Unfortunately, social media commentaries led creditors to believe that the exchange might be able to repay their funds as early as September 30. However, the court has yet to approve FTX’s restructuring plan, meaning FTX cannot begin its repayment rollout until then. The next court hearing is set for October 7, and Judge John T. Dorsey will preside. Creditors will have to wait till then to get some clarity on their repayments. If the court approves the plan, creditors with smaller claims under $50,000 may receive their paybacks before the year’s end. Some analysts predict a bullish market outlook for when FTX makes repayments Crypto analyst Miles…
The post Here’s why FTX repayment won’t happen tomorrow appeared on BitcoinEthereumNews.com.
Despite social media rumours suggesting an FTX reimbursement by September 30, customers will have to wait an additional week for any updates on repayments. Before FTX can disburse any creditor funds, the court will have to approve its wind-down plan, with the next court hearing scheduled for October 7. FTX is waiting on court approval for its reorganization plan When FTX filed for bankruptcy protection in November 2022, and CEO Sam Bankman Fried resigned, John Ray III, a long-time bankruptcy litigator, took over the reins to try and fix the mess. On May 7, 2024, the exchange filed its Chapter 11 Plan of Reorganization and a disclosure statement, revealing that it owed about $11.2 billion to its customers. The company estimated it could distribute between $14.5 billion and $16.3 billion to pay its creditors and customers. The plan also included details on supplementary interest payments that could be made once all claims are paid in full. At the time, John Ray commented: We are pleased to be in a position to propose a Chapter 11 plan that contemplates the return of 100% of bankruptcy claim amounts plus interest for non-governmental creditors. ~John Ray Unfortunately, social media commentaries led creditors to believe that the exchange might be able to repay their funds as early as September 30. However, the court has yet to approve FTX’s restructuring plan, meaning FTX cannot begin its repayment rollout until then. The next court hearing is set for October 7, and Judge John T. Dorsey will preside. Creditors will have to wait till then to get some clarity on their repayments. If the court approves the plan, creditors with smaller claims under $50,000 may receive their paybacks before the year’s end. Some analysts predict a bullish market outlook for when FTX makes repayments Crypto analyst Miles…
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