A false good idea? The first time the new boss of FTX spoke about it last January, the platform’s customers in bankruptcy clearly hesitated between laughing and crying. But month after month, the prospect of a restart of the platform is proving to be serious, and the team of administrators in charge of recovery is openly considering it as a solution for pay off creditors. However, these creditors, gathered in CommitteeBut the people in charge don’t really seem convinced by the idea, and even admit that they weren’t consulted. Here’s a look back at a good idea that didn’t go down too well with everyone.
The administrators of the FTX bankruptcy have proposed a plan to restart the exchange…
The principle put forward by the bankruptcy administrators – the Trustee – is quite simple: it is to open a crypto platform offshorefor all customers of FTX who are not American. This would be accessible to all former users of FTX.comcalled Dotcom groupwho will receive shares in this new entity according to their past portfolios. Here’s an extract from the file available for download atarticle by our American colleague :
« The debtors could decide that the offshore exchange company deliver non-monetary consideration to the Dotcom customer pool in the form of equity securities, tokens or other interests in the offshore exchange company or rights to invest in equity securities, tokens or other interests. »
As far as US customers are concerned, no clear answer yet, and for all those who were hoping for a strong comeback for FTTthings seem to be going well:
« FTT holders’ claims will be canceled as of the effective date and holders will not receive any distributions. »
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… but creditors really don’t like this idea
But this restartas incomplete as it may be, was not built in consultation with all parties. The Committee of creditors reacted strongly to the publication of the draft platform offshore and denied any involvement in its development. Yes, there are discussions about a restart, but no, that’s not really what they had in mind. Hence the disappointment perceptible in the press release:
« What was supposed to be a watershed moment for these bankruptcy cases, namely the filing of a plan of reorganization preceded by solid, good-faith negotiation and collaboration, is anything but. The committee is extremely disappointed that the debtors did not confer with the committee on these matters. »
For the creditors, this plan is nothing more than a « simple ideawhich is worth what it’s worth, but to date there have been no formal discussions, and the restart of any platform is a long way off. « far from being a reality. Indeed, in the document published just a few hours ago, the Committee lists a series of solutions to promote the reimbursement and an offshore platform is definitely not one of them!
A new token, better financial management and more consultation: creditors make their demands
They would already like the directors optimize the current cash position in an attempt to bring money into the coffers:
« For example, the Committee has been requesting for many months that the Debtors invest a portion of their nearly $2.6 billion cash balance in short-term commercial paper in order to generate greater revenues and partially offset professional fees. »
The Committee’s lawyers, Paul Hastings and Young Conaway Stargatt & Taylor, thus proposed a Action Plan for maximize certain crypto holdings belonging to FTX and all affiliated companies, as well as to Alameda Research. However, all of this remained a dead letter, and the directors even sold part of these assets at a loss, which irritated the creditors.
Finally, the more than 330 million spent in legal fees are also among the Committee’s sore points. FTX will probably be one of the bankruptcies most expensive in U.S. history, and creditors feel they are being taken for a ride! However, to avoid further delay and remain constructive, the Committee is prepared to discuss as long as it’s a little better considered.
The legal proceedings are still before the bankruptcy court of Delaware and spats between creditors and administrators have yet to reach the courts. Provided, however, that all these people can come to an agreement, otherwise they risk sending the company back to the drawing board. the final decision to the Greek Calendas.
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