Sunil Kavuri, a representative of the largest FTX creditor group, has recommended voting against the bankrupt crypto exchange’s reorganization plan.Kavuri maintained his view that the estate should pay out cryptocurrencies in kind rather than the dollar value when the exchange filed for bankruptcy. He argued that the debtors owe FTX customers up to ten times more than the petition prices, claiming that they have “destroyed an estimated over $10 billion” in value for FTX creditors.
Kavuri made reference to the current lawsuit against the estate's law firm Sullivan and Cromwell over its ties to the exchange prior to its collapse. He claimed that the plan included an exculpation clause “so they and no one involved sued for misconduct.”On Tuesday, the FTX estate said it plans to give 98% of its creditors at least 118% of allowed claims, with other creditors receiving full repayment and billions more in compensation for the time value of their investments.
FTX’s proposal intends for the repayments to occur within 60 days after the plan’s effective date. FTX estimated the total value of cash available for distribution to be between $14.5 billion and $16.3 billion, though the plan is still subject to court approval.
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