FTX is taking important steps in the restructuring process. The company is planning to implement its plan to pay the main creditors at the end of May. The relevant court records reported that 11.4 billion dollars of cash was collected during the bankruptcy process.
FTX payments on May 30
According to the process initiated at the Delaware court, FTX plans to start its main creditor payments on 30 May. The collected cash reserve is used for the financing of payments to be distributed to hundreds and thousands of parties affected. This indicates that the restructuring efforts after bankruptcy have been evaluated in detail.
Institutions and investors with crypto assets on the FTX platform are among the main creditors. Small rights holders have already begun to receive payments regarding their demands under $ 50,000. This shows that increasing rights demands in the bankruptcy process emerge as a structural feature.
FTX refunds
One of the most important issues encountered in the payment process is that there are thousands of rights demands. In the investigations, some requests are reported to be repeated or invalid. The company’s financial statements bring about the steps that should be eliminated and verified by these demands.
Andrew DietDerich: FTX said that the request for 27 urbanism was received. Some of the demands are repeated or confirmed.
Legal creditors are entitled to demand 9 %interest annually for unpaid rights. The implementation of interest rates may increase the financial burden of the company if there is a delay in payments. This has the potential to create additional pressure in the payment process.
There have been different expectations among the creditors about the extradition of assets. Many rights holders hopes to return their pre -bankruptcy assets in crypto, while payment will be made in dollars. This difference is considered an important variable that affects the course of the payment process. For some subcoins, payment in dollars is advantageous with the latest major decreases, but this is not profitable for BTC and some subcoins. On the other hand, it is a matter of curiosity whether the payments to be made to large creditors will trigger a new wave of rise in crypto currencies.
FTX’s payment plan is carefully monitored in terms of correct management of cash reserves during the restructuring process after bankruptcy and reducing the risks related to interest burden. The company’s efforts to clarify the demands of the company may contribute to the reduction of the grievance of rights holders in the future.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
