Major claims against the bankruptcy procedure platform FTX reached about 52 cents on the dollar in OTC-deals. The catalyst was expectations of higher recoveries for creditors, writes The Block.
The data was provided to the publication by Thomas Braziel — partner at 117 Partners and 507 Capital, which specialise in buying claims against bankrupt firms.
According to the expert, the price indicates that most participants expect recoveries to creditors to exceed half of their assets.
The expert explained that only the largest and ‘clean’ claims are likely to command that level.
Enthusiasm has risen since Anthropic, whose Series B funding round was led by FTX, in October received a higher valuation after another round of financing.
Creditors hope that the platform’s management selling a stake in the AI startup will help return their funds. A full 100% recovery is possible.
As of mid-2024, clients of the exchange could receive payments on FTX claims amounting to $9.2 billion. This follows from a plan approved by creditors’ representatives and the platform’s new management.