FTX's Chapter 11 Plan to Go into Effect on January 3rd, 2025

FTX Trading Ltd. and its affiliated debtors have announced the effectiveness of their Chapter 11 Plan of Reorganization, scheduled for January 3, 2025. This development sets the stage for initial distributions to be made to holders of allowed claims within the Plan's Convenience Classes, expected within 60 days following the effective date.

The announcement marks a significant milestone for the company, which has been navigating bankruptcy proceedings. FTX Debtors' CEO John J. Ray III highlighted the diligent efforts of the team in recovering billions of dollars, leading to this juncture. Ray emphasized the importance of customers completing necessary steps to ensure they receive their distributions promptly.

To facilitate the distribution process to both retail and institutional customers and other creditors, FTX has partnered with two companies. BitGo and Kraken, who will assist in the distribution of recoveries in supported jurisdictions in accordance with the Plan.

The Plan's Initial Distribution is confined to the Convenience Classes, with further announcements to be made regarding record and payment dates for other classes of claims. The news is based on a press release statement from FTX, which outlines the current status and future steps in the company's reorganization process.

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Source: Investing.com