FTX Trading Ltd. (d.b.a. FTX.com) and its affiliated debtors (“FTX” or the “Debtors”) have taken a significant step forward in their Chapter 11 proceedings by filing their anticipated amended Plan of Reorganization (the “Plan”) and accompanying Disclosure Statement (the “Disclosure Statement”) with the United States Bankruptcy Court for the District Court of Delaware (the “Bankruptcy Court”).

The Plan, pending finalization and approval, outlines the comprehensive distribution of assets associated with FTX at the time of its collapse in November 2022, amounting to a forecasted value between $14.5 and $16.3 billion.

FTX has achieved this recovery level through the monetization of a diverse range of assets, primarily proprietary investments held by Alameda or FTX Ventures businesses, or litigation claims.

Despite facing a substantial shortfall at the time of the Chapter 11 filing, the Debtors have diligently pursued alternative sources of recoverable value to fulfill creditor obligations.

The Plan aims to fully repay all non-governmental creditors based on the value of their claims, with a subordination arrangement allowing for interest payments to primary classes of customers and creditors at up to a 9% rate.

Additionally, certain creditors may receive additional payments through the Supplemental Remission Fund, detailed in the Disclosure Statement.

For creditors with claims of $50,000 or less, the Plan establishes a special “convenience class,” facilitating expedited repayment within 60 days after the effective date, subject to necessary requirements.

At the core of the Plan are settlements reached consensually with key stakeholders, addressing various claims and facilitating the recovery process.

These settlements include agreements with the Internal Revenue Service, the Commodity Futures Trading Commission, the Department of Justice, among others.

John J. Ray III, Chief Executive Officer and Chief Restructuring Officer of FTX, expressed gratitude for the collaborative efforts of governmental agencies, stakeholders, and creditors throughout the complex recovery process.