Insiders: FTX bankruptcy claims sold at up to 20% on private OTC markets
ChainCatcher news reports that a knowledgeable source indicates that distressed asset funds can purchase FTX bankruptcy claims in the private OTC market for up to 20 cents on the dollar (with a claim investment valuation of 20%).
Some public bankruptcy markets value the trading of distressed FTX assets at around 16% of the claim's face value. Individual claims listed for sale on the platform Xclaim reach up to $27 million.
An anonymous FTX creditor stated that pricing in the private OTC market is similar, with distressed asset funds buying at prices between 15% and 20% of the claim's face value. "Their expectation is that it will take five years to get the funds. If these funds ultimately achieve a 25% return in five years, that's not a great deal, as the annual return is only around 5%. I believe many of these companies expect to recover about 50% of the claim's face value." (source link)