FTX crypto exchange to submit its reorganisation plan by mid-December 

• Now, defunct exchange FTX is planning to present its updated organisational restructuring plan to the court by mid-December.
• One of the striking things in the mail written by the Official Committee highlighted its proposed plan to maintain a balance to ensure stakeholders’ interest.
• FTX had filed for Chapter 11 bankruptcy on 11 November following its then CEO Sam Bankman-Fried was held responsible for misappropriating user funds.

Now, defunct exchange FTX is now planning to present its updated organisational restructuring plan to the court by mid-December. The Official Committee of Unsecured Creditors, in a written reply to the FTX 2.0 Customer Ad Hoc Committee, provided insights into the details of the proposed amended reorganisation plan. 

The reply encapsulated how FTX exchange aims to reshape the future of the unsecured creditors. One of the striking things in the mail written by the Official Committee highlighted its proposed plan to maintain a balance to ensure stakeholders’ interest. 

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The Official Committee, in the letter, stated that the material terms of the currently proposed plan of reorganisation strikes an appropriate balance between stakeholders’ competing interests and positions that are beneficial to all unsecured creditors. An amended plan of reorganization and disclosure statement will be filed with the Bankruptcy Court in mid-December that will provide further details.

Potential FTX acquisition may still take time 

FTX had filed for Chapter 11 bankruptcy on 11 November following its then CEO Sam Bankman-Fried was held responsible for misappropriating user funds. The bankruptcy filing sought to cushion the losses of stakeholders connected to FTX and affiliated companies, or FTX debtors.

But then, FTX debtors reached out to financial services firm Perella Weinberg Partners (PWP) for various sale or reorganization attempts. However, FTX cautioned that “the engagement of PWP is subject to court approval.”

However, details of a potential acquisition by financial services firm PWP may only unfold once the bankruptcy proceedings are formally submitted via a motion for court approval to sell. Concepts like recovery rights tokens, referenced in the FTX 2.0 Customer Ad Hoc Committee’s letter, are currently being evaluated by the Official Committee and potential transaction participants.

As part of the recent bankruptcy filing, FTX and 101 of the 130 affiliated companies announced the launch of a strategic review of their global assets. However, the recoverable value for the stakeholders can only be assessed after court approval. 

Is new leadership on cards?

The head of the U.S. securities regulator, Gary Gensler, has suggested a revived FTX crypto exchange could receive SEC approval, provided the new leadership sticks to legal boundaries. 

Gensler’s remarks came after news reports broke out that ex-NYSE president Tom Farley could be interested in buying the FTX exchange. Farley, who is also the CEO of crypto exchange Bullish was among the two other names that were circling on a potential buyout. 

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