FTX Ad Hoc Committee Prepares Amended Reorganization Plans Set for December

cryptonews.com:

The FTX 2.0 customer ad hoc committee of the now-defunct crypto exchange has received a response to the letter sent to its official arm.

In a letter dated December 4, 2023, the Official Committee of Unsecured Creditors (UCC), overseeing the bankruptcy of the FTX exchange, acknowledged the concerns raised by its ad hoc arm.

Led by Ken Pasquale of Paul Hastings LLP, the UCC stated that it is actively working behind the scenes to ensure an expeditious bankruptcy process.

Regarding unsecured creditors, the committee mentioned considering the option of “recovering rights tokens” to maximize their return on value. However, it indicated that specific details would remain confidential due to legal obligations.

While both committees are exploring avenues to assist investors defrauded following the collapse of the Sam Bankman-Fried (SBF)-led platform, the UCC confirmed divergent views on how assets should be valued and redistributed in the reorganization plan.

Nevertheless, the committee aims to submit an amended reorganization plan to the Bankruptcy Court in mid-December.

This is expected to provide further details on the committee’s recommendations. However, it stated that it is open to exploring other reasonable alternatives that can improve the terms of the proposed plan.

The letter also touched on the subject of a potential acquisition by a third party, indicating that the process is still ongoing.

In a November 2022 press release, FTX announced engaging Perella Weinberg Partners (PWP) as a lead investment bank in preparation for sale or reorganization. However, the purchase by PWP is still subject to the court’s approval.

This announcement was made following the kickstarting of the bankruptcy proceedings. The press release also