The United States Bankruptcy Court for the District of Delaware has approved FTX’s bankruptcy reorganization plan, which shortly led to FTX native token, FTT breaking through $3.4 early morning today.
After the news of the bankruptcy plan broke, the market price of FTT crossed $3.4 today, reaching a high of US$3.43 for a short while. FTT is currently trading at $2.63 after seeing a jump of 6.27% in the past 24 hours. The volume of trading for FTT has also gone up by 274.64% in the past 24 hours.
Note that the Plan’s effective date and estimated first distribution date will be announced by debtors at a later point.
According to the press statement, 98% of the creditors of FTX will receive approximately 119% of the amount of their allowed claims within 60 days after the effective date of the bankruptcy plan, provided their know-your-customer and other distribution requirements are fulfilled. FTX has projected that the total value of property collected, converted to cash and available for distribution will be between $14.7 billion and $16.5 billion.
The statement reveals that this amount includes assets under the control of the chapter 11 Debtors and assets under the control of the Joint Official Liquidators of FTX Digital Markets, Ltd. (Bahamas), the Administrators of FTX Australia, the United States Department of Justice and other private parties that have cooperated in the recovery efforts.
Thanking users for being patient throughout the process, CEO and Chief Restructuring Officer of FTX, John J. Ray III Ray said, “Looking ahead, we are poised to return 100% of bankruptcy claim amounts plus interest for non-governmental creditors through what will be the largest and most complex bankruptcy estate asset distribution in history.”
Also Read: FTX Founder Sam Bankman-Fried’s Girlfriend Gets 2 Years In Prison, $11B Penalty
Source: https://www.cryptonewsz.com/ftt-broke-through-judge-approve-ftx-bankruptcy/