FTX Nears Bankruptcy Reorganization Completion, Set to Begin Creditor Compensation in Early 2025

COINOTAG News reports on November 22 that FTX Trading Ltd. and its associated debtors are on the brink of finalizing the court-approved bankruptcy reorganization plan. This significant milestone sets the stage for FTX to initiate compensation distributions to its creditors and customers. The impending implementation of this plan indicates that FTX has navigated critical negotiations with creditors and is poised to commence actual debt repayments and asset allocations.

FTX’s CEO and Chief Restructuring Officer, John J. Ray III, expressed optimism regarding the timeline, stating that the payouts are anticipated to commence in early 2025. This timeline underscores the substantial recovery efforts the debtor team has undertaken, managing to recoup billions for those affected. Ongoing advancements in collaboration with distribution agents are underway to expedite the return of assets to stakeholders.

FTX outlined key dates for distribution activities: In early December, arrangements with distribution agents will be finalized, paving the way for customer guidance on setting up accounts. By the end of December, the official distribution date will be announced, contingent on the Court’s approval of the disputed claim reserve. The reorganization plan is projected to take effect in early January 2025, with initial distributions expected shortly thereafter.