The FTX restructuring plan includes the establishment of a trust company to manage illiquid investments

ChainCatcher news, FTX's current CEO John J.Ray III recently stated that the team submitted a reorganization plan early in the bankruptcy proceedings to obtain feedback from creditors. FTX hopes to collaborate with creditors to modify the plan in the third quarter of 2023 and submit a disclosure statement in the fourth quarter.

The proposed FTX reorganization plan indicates that, in addition to establishing an "offshore exchange company," FTX is also considering setting up a new trust called "FTX Ventures Trust." This trust will hold FTX's investments in private startups as well as digital tokens that FTX does not plan to sell immediately after exiting bankruptcy.

The purpose of the trust is to manage these long-term investments and distribute cash from them over time. FTX has not yet decided whether the trust will be owned by FTX's bankruptcy estate or traded separately after bankruptcy. Its goal is to find a way to maximize the value of these illiquid investments, which are not easily sold by FTX's management after bankruptcy.

Yesterday's news, FTX has submitted a reorganization plan that includes restarting the offshore exchange; the FTX creditors' committee will soon begin negotiations with the debtors on the business aspects of the reorganization plan.