Nearly All FTX Creditors Will Get 118% of Their Funds Back in Cash, Estate Says in New Plan
Summary
Bankrupt FTX proposes a reorganization plan to pay 98% of creditors 118% of their claims in cash within 60 days. Other non-governmental creditors to receive 100% of claims plus up to 9% interest. The estate expects $14.5-16.3 billion in cash for distribution, denying market recovery as the driving force. The plan also settles claims from regulators and government agencies, with a hearing scheduled for June. Former CEO Sam Bankman-Fried's attempt to use the estate's ability to pay back customers in full as evidence of zero harm was rejected, and he was sentenced to 25 years in prison.
