FTX offers 9% interest, creditors with claims under $50,000 will receive 118% of their claim amount within 60 days.

FTX's bankruptcy restructuring team submitted a revised reorganization plan to the Delaware bankruptcy court on 5/7, which aims to distribute assets from FTX's bankruptcy to global customers and creditors. FTX estimates the total value of assets available for distribution to be between $14.5 billion and $16.3 billion. If approved by the bankruptcy court, 98% of FTX's creditors are expected to receive 118% of their allowed claim amounts within 60 days of the plan taking effect.

FTX Global Asset Consolidation Estimated at $14.5 to $16.3 Billion

FTX predicts that the total value of assets collected, converted into cash, and available for distribution will range from $14.5 to $16.3 billion. This amount includes assets controlled by John Ray in the U.S.-led liquidation reorganization case, as well as assets controlled by the FTX Digital Markets, Ltd., the official liquidators of FTX Bahamas entity, the Bahamas Securities Commission, and the official liquidators of FTX Australia, in collaboration with the U.S. Department of Justice and dozens of private groups cooperating in the recovery effort.

Expected 9% Interest Payout, Creditors with Claims of $50,000 or Less to Receive 118% Directly

The plan contemplates full payment of the claims of all non-governmental creditors based on the value determined by the bankruptcy court. Additionally, the plan considers a subordinated arrangement with governmental creditors, allowing for consensus interest rates of up to 9% from the date of bankruptcy filing until the effective date, to be paid to the primary categories of customers and creditors. Certain creditors may also have the opportunity to receive additional compensation through the supplemental mitigation fund described in Section 1.F of the disclosure statement.

For creditors holding amounts of $50,000 or less, the plan establishes a special "convenience class." With this classification, if the plan receives approval from the bankruptcy court, it is anticipated that approximately 98% of FTX creditors will receive approximately 118% of their allowed claim amounts within 60 days after the plan becomes effective.

Furthermore, the plan has negotiated solutions with key stakeholders, including the IRS, CFTC, Department of Justice, and BlockFi, among others.

Haven't filed a claim yet? FTX offers an additional channel for claims. Unfiled claims can be completed through FTX Digital by May 15.