FTX's Dotcom Clients Vote 94% In favor of Restructuring Plan
By Anthony Burr | TH3FUS3 Managing Editor
October 1, 2024 04:00 AM
Reading time: 1 minute, 18 seconds
TL;DR FTX's reorganization plan has gained overwhelming support from its creditors. The plan will undergo a confirmation hearing on Oct. 7. Under the plan, around 98% of creditors are set to receive at least 118% of their claim value in cash.
The restructuring administrator of collapsed cryptocurrency exchange FTX has disclosed the voting results for its reorganization plan, with over 94% of FTX Dotcom clients voting in favor.
Voting Results
Kroll Restructuring Administration, responsible for soliciting votes, disclosed in a filing on Monday that nearly all classes of creditors voted to " accept."
Two classes of creditors did not return ballots and were presumed to accept the plan. The Monday filing showed that 94.48% of creditors in the "dotcom customer entitlement claims" class who returned their ballots—representing about $6.83 billion in claims by value—voted in favor of the reorganization plan.
Approximately 89.1% of creditors in the "U.S. customer entitlement claims" class who sent in ballots, representing about $60.99 million in claims, voted yes to the plan. Additionally, 95.88% of creditors in the "dotcom convenience claims" class, representing $223.59 million in claims, also voted in favor.
Financial Implications
Under the FTX bankruptcy plan, about 98% of creditors are set to receive at least 118% of their claim value in cash, according to FTX press releases. The bankruptcy claims, however, were evaluated based on the value of the relevant cryptocurrencies at the time.
Preliminary Support
When the voting ended in August, the restructuring team said it had received "overwhelming preliminary support from all classes of creditors" and that over two-thirds of all solicited claims by voting value participated in the solicitation process.
"The reorganization plan's confirmation hearing is scheduled for Oct. 7."
The forthcoming hearing will be crucial for finalizing the reorganization plan, marking a significant step in resolving FTX's bankruptcy.