ChainCatcher news, FTX Trading Ltd. and its affiliated debtors announced that FTX is nearing the completion of the final prerequisites for the court-approved bankruptcy reorganization plan, paving the way for FTX to begin distributing compensation to creditors and customers. The effectiveness of the bankruptcy reorganization plan means that the court-approved reorganization plan officially begins implementation. This typically marks a critical step in the bankruptcy process, where the bankrupt company has reached agreements with creditors and other stakeholders and is prepared to proceed with actual debt repayment and asset distribution according to the plan.FTX provided the following update regarding the expected distribution timeline:In early December, the debtors expect to finalize arrangements with professional distribution agents who will assist FTX in distributing compensation to global customers within supported jurisdictions. At that time, the debtors will provide instructions to guide customers in establishing approved accounts on the existing customer portal.By the end of December, the debtors expect to announce the exact effective date after the court order approving the disputed claims reserve amount, which is a prerequisite for distribution according to the confirmation order.The debtors currently anticipate that the bankruptcy reorganization plan will become effective in early January 2025. According to the confirmation order, the first distributions will occur within 60 days after the effective date, targeting convenience class creditors allowed to claim under the plan. The record date for the initial distribution will be the same as the effective date.

ChainCatcher news, according to The Block, FTX's restructuring administrator disclosed the voting results of its restructuring plan, with over 94% of FTX Dotcom customers voting in favor.Monday's filing shows that in the "dotcom customer equity claims" category that participated in the vote, 94.48% of creditors (by value, with claims amounting to approximately $6.83 billion) support the restructuring plan. The confirmation hearing for the restructuring plan is scheduled for October 7.According to FTX's bankruptcy plan, approximately 98% of creditors are expected to receive at least 118% of the value of their claims in cash. However, these bankruptcy claims are assessed based on the value of the relevant cryptocurrencies at the time.

ChainCatcher news, according to The Block, based on a newly disclosed agreement, FTX debtors will allocate up to $230 million from the proceeds of government seizure actions to compensate preferred shareholders. The finalization of this agreement after the deadline for FTX creditors to vote on the claims plan, and its announcement 30 days later, has surprised and angered some creditors. Before the voting deadline on August 16, creditors overwhelmingly approved the FTX restructuring plan, but they were unaware of this provision. Although shareholders typically receive compensation last in bankruptcy proceedings, FTX debtors stated that compensating preferred shareholders would help avoid high litigation costs and delays associated with the seized proceeds.Additionally, according to the latest FTX bankruptcy filings, the claims plan has not yet been approved by the court. The next court hearing to confirm the restructuring plan is scheduled for October 7, 2024. If the plan is approved, creditors with claims under $50,000 may begin to receive compensation by the end of 2024. Those with larger claims may have to wait until the first or second quarter of 2025 to receive compensation.

ChainCatcher message, WazirX posted on X that it plans to hold the second Townhall meeting on September 16 at 18:00 to discuss the proposed restructuring plan draft.

ChainCatcher news, according to The Block, the latest documents in the FTX bankruptcy case show that the U.S. trustee and some creditors have raised objections to the exchange's revised reorganization plan. U.S. trustee Andrew R. Vara pointed out ten major flaws in the plan, primarily concerning the overly broad scope of legal waivers, unequal compensation for creditors, and the refusal to bear costs related to data breaches.Vara specifically emphasized that "convenience" category customers will receive a lower compensation ratio solely due to their smaller claim amounts.At the same time, the largest group of FTX creditors, represented by Sunil Kavuri, has also submitted a complaint, questioning the plan's waiver provisions as too broad and calling for the establishment of a physical repayment mechanism to avoid triggering taxable events for creditors.Currently, the confirmation hearing is scheduled for October 7, Beijing time, and it is expected that no further objections will be submitted. These objections could have a significant impact on FTX's reorganization process.

ChainCatcher news, according to Cointelegraph, FTX and its affiliated debtors stated in an announcement that their amended reorganization plan submitted to the U.S. Bankruptcy Court for the District of Delaware has received majority support from all classes of voting-eligible creditors, including customers of FTX US and FTX Dotcom.FTX cited an unofficial voting report indicating that over 95% of the creditors who submitted votes supported the plan. FTX also stated that it will submit the final voting results to the bankruptcy court before the confirmation hearing on October 7.

ChainCatcher news, according to a report by PR Newswire, the bankrupt cryptocurrency exchange FTX and its affiliated debtors have announced that their reorganization plan submitted to the U.S. Bankruptcy Court in Delaware has received overwhelming preliminary support from all classes of creditors. An unofficial voting report indicates that over 95% of voting creditors supported the plan, representing 99% of the value of voting claims. The reorganization plan is expected to exceed the acceptance threshold set by the Bankruptcy Code.FTX CEO and Chief Restructuring Officer John J. Ray III stated, "The plan provides for the return of 100% of the bankruptcy claim amounts and interest to non-government creditors and addresses complex disputes with dozens of government and private stakeholders. We will continue to work constructively with creditors and the court in the coming weeks until the confirmation hearing."FTX will submit the final voting results to the U.S. Bankruptcy Court for the District of Delaware before the confirmation hearing scheduled to begin on October 7, 2024.

ChainCatcher news, the FTX bankruptcy reorganization plan has sparked intense debate in the Delaware bankruptcy court. FTX lawyers and creditors discussed the disclosure statement at a hearing on Tuesday. The statement provides information to creditors to help them decide whether to accept the reorganization plan. FTX plans to pay at least 118% of the claims amount to 98% of the creditors, but some creditors prefer to be paid in cryptocurrency rather than cash.Judge John Dorsey needs to approve the plan, after which creditors will vote to confirm; the hearing is scheduled to take place later this year. The next hearings are set for July 17 and August 15.

ChainCatcher news, the official committee of unsecured creditors of FTX stated on social media that it is continuing to evaluate the revised restructuring plan submitted by the FTX debtors and the accompanying disclosure statement, with the deadline for objections to the disclosure statement set for June 5, 2024.The committee believes that maximizing the recovery rate for creditors and shortening the time required for recovery is crucial.

ChainCatcher news, according to Businesswire, Bitcoin mining company Core Scientific stated that the U.S. Bankruptcy Court for the Southern District of Texas has approved the company's Chapter 11 reorganization plan, and Core Scientific will relist on Nasdaq by the end of January 2024.Under the terms of the plan, shareholders (as of the expected record date of January 23, 2024) will receive new common stock and warrants of the company, representing approximately 60% of the company's new equity. Assuming all applicable warrants are exercised for cash and the cash is used to pay off debts, the company's existing debt will be fully repaid, reducing the debt balance by approximately $1 billion compared to the balance prior to the plan. Shortly after the plan was approved, the company announced that it had fully repaid its DIP financing and successfully completed an oversubscribed $55 million equity issuance.

ChainCatcher news, Gemini Trust posted on the X platform revealing that the company sent an email to creditors on December 13, outlining the proposed restructuring plan, which has now been submitted for a vote. According to the proposed plan, creditors will receive compensation equal to their Earn cryptocurrency balances held before January 19, 2023, the day when Gemini's cryptocurrency lending partner Genesis Global Capital filed for bankruptcy.Some individuals, including Bloomberg ETF analyst James Seyffart, believe that the plan is "brutal" given the prices of Bitcoin and Ethereum. In the worst-case scenario, creditors could receive 61% compensation, meaning that each Bitcoin held by creditors on Earn would only yield $12,773, which is 30% of the current Bitcoin value. In light of this, some users have strongly opposed the plan, with many urging creditors to "vote against it."

ChainCatcher news, the official account of FTX creditors stated on social media that, after extensive discussions with the special committee for non-US customers, the unsecured creditors committee, and the plaintiffs in the class action lawsuit, a settlement has been reached regarding the customer property dispute: if approved by the bankruptcy court, the settlement agreement will create a special deficiency claim to benefit customers. As proposed by the FTX debtors in July, it will also facilitate making offers to eligible customers for the agreed amounts. All relevant creditor representatives have agreed to support the related amended reorganization plan to be submitted on December 16, 2023.

ChainCatcher news, according to Walter Bloomberg, the U.S. Securities and Exchange Commission (SEC) has filed court documents opposing Celsius's plan to distribute crypto assets to customers through the Coinbase restructuring plan. The SEC stated that under the restructuring plan proposed by Celsius, Coinbase would provide brokerage and trading services, but Coinbase is involved in activities that have triggered litigation by regulators, and that litigation is still ongoing.

ChainCatcher news, according to The Block, Celsius's creditors have voted in favor of a restructuring plan that will return approximately $2 billion worth of Bitcoin and Ethereum to creditors and allocate equity in the new company. Documents show that over 98% of creditors voted in support of the plan. Next, the U.S. Bankruptcy Court for the Southern District of New York will hear the case and make a final approval at a hearing on October 2.

ChainCatcher news, according to TechCrunch, the RWA DeFi lending protocol Goldfinch has reached an agreement with a $5 million loan defaulter on a loan restructuring plan. This plan may recover the $5 million loan from the defaulter Tugende for its motorcycle financing project in East Africa.The terms of the agreement have not been disclosed. Tugende co-founder and CEO Michael Wilkerson declined to reveal details of the restructuring plan but promised to provide more information in the coming weeks.

ChainCatcher news, Vauld co-founder Darshan Bathija tweeted that the debt restructuring plan for the cryptocurrency lending platform Vauld has been approved by the Singapore court.As part of the plan, the current board will appoint a new CEO, a creditor representative, and a plan manager. Customers are currently resubmitting their KYC information.

ChainCatcher news, the official committee of unsecured creditors of Celsius tweeted that a webinar related to the disclosure statement of the Celsius bankruptcy reorganization plan will be held on August 21, which will kick off several meetings on specific topics, including the voting that creditors can undertake under the plan and how to fill out the ballot.

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.

ChainCatcher message, FTX User Alliance tweeted that FTX has currently submitted a restructuring plan. Key points of the plan include that all non-customer claims (such as IRS) will be processed later, FTT claims will be wiped out, and offshore exchanges will be restarted to compensate for customer losses.