FTX’s Customer Body Requests Inclusion in Restructuring Discussions After Disapproving of Draft Bankruptcy Plan
The official creditor committee for FTX expressed dissatisfaction with the exchange’s proposed bankruptcy exit plan, alleging that the restructuring team had ignored it.
The Official Committee of Unsecured Creditors (UCC) said in a recent court filing that despite numerous inquiries, they had not spoken with FTX about the proposed Chapter 11 plan.
The suggested strategy describes how client claims are categorized and envision a way for FTX to relaunch as an offshore exchange.
The UCC expressed alarm over the plan’s tardy filing, believing that their opinion had been ignored throughout negotiations.
Another problem was the lack of a leader for a future reboot with suitable crypto experience. To get support from millions of consumers and creditors for plan confirmation, the UCC underlined the need for a recovery token that complies with regulations and the distribution of value to customers who were most negatively impacted by FTX’s bankruptcy.
The UCC warned that the present strategy could result in higher expenses and delays. As a result, they said that they would provide their own plan for customers and creditors to vote on if they were not involved in the restructuring discussion.
Despite their displeasure, the restructuring team’s openness to changes was appreciated by the UCC, and they look forward to beginning negotiations shortly to make sure their suggestions are followed.
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