FTX filed an amended restructuring plan, under which assets will be valued at the rate on the date of the bankruptcy filing — November 11, 2022.
At that time Bitcoin was trading around $17,000; the current price is above $41,100.
In early November 2022, the FTT token was valued at about $26, while now it trades around $3.7.
The plan states that creditors belonging to certain classes will be able to vote on the changes. In their view, the approach they propose “reflects a number of compromises to create a better, fairer and more economical outcome”.
One of the creditors noted that the new restructuring plan contravenes FTX’s Terms of Service, which state that digital assets are the property of users.
FTX Debtors have filed the reorg. Plan
Most importantly they have ignored FTX TOS that states Digital Assets are the property of Users and not FTX Trading
The plan says that Digital Assets are valued at Petition Date conversion rates (prices) pic.twitter.com/WTj07nlOP5
— Sunil (FTX Creditor Champion) (@sunil_trades) December 16, 2023
Voting on the plan is expected in 2024.
It was also disclosed that from August through October, FTX spent more than $118 million on legal and consulting services. Accordingly, expenses amounted to $1.3 million per day, or $53,000 per hour.
The largest bill was issued by Alvarez and Marshall ($35.8 million for three months). Sullivan and Cromwell billed for their work $31.8 million at an average hourly rate of $1,230.
According to some estimates, the total amount of costs paid since the start of the FTX bankruptcy case stands at about $350 million.
BTW @lopp this estimates $1.45B of remaining professional fees for a total of $1.8B. The Estate is currently charging $0.5B per year and bankruptcies are not short endeavors.
To date, here are the fees that have been petitioned in just under 1 year (~$350mm has been paid): https://t.co/fZhMyTE3B1 pic.twitter.com/5p6at5ZbWy
— Mr. Purple ?️ (@MrPurple_DJ) December 17, 2023
In October, creditor representatives and FTX management approved a plan under which customers could expect to recover $9.2 billion by mid-2024.
In the same month, the exchange’s leadership began considering three options for restructuring the platform.
In November, a court approved the petition by FTX and affiliated entities to sell Grayscale and Bitwise trust shares for $744 million.