Creditors are dissatisfied with the inclusion of the law firm S&C's indemnity clause in the amendment to the FTX debt repayment case

ChainCatcher news, according to Cointelegraph, although FTX's newly revised proposal promises "billions of dollars in compensation," creditors are dissatisfied with specific terms related to the law firm Sullivan & Cromwell (S&C). On the 7th, FTX announced a new amendment to the debt repayment plan, which includes a release clause. The release clause means that if damages occur during the execution of the bankruptcy process, some parties may be exempted from liability.

FTX creditor Sunil stated that in the case of FTX, S&C may have included terms that release themselves from any potential liability. Sunil is a member of the largest creditor group of FTX—the FTX Customer Ad-Hoc Committee, which has over 1,500 FTX creditors.

Earlier today, it was reported that FTX and its affiliated debtors submitted a revised reorganization plan and disclosure statement to the U.S. Bankruptcy Court in Delaware on Tuesday. The plan is expected to concentrate the distribution of nearly all of FTX's assets at the time of its bankruptcy in November 2022 to global customers and other creditors. FTX anticipates that the total value of the assets collected, converted to cash, and available for distribution will be between $14.5 billion and $16.3 billion.