FTX to repay creditors in the Bahamas by February 18, 2025, with 9% interest, marking a significant step in restructuring.
FTX Digital Markets has announced that it will begin repaying creditors in the Bahamas with claims of up to $50,000 by February 18, 2025. The Convenience Class creditors will obtain a 9% yearly interest payment based on claim values established on November 11, 2022. A significant creditor check payment initiates after multiple years devoted to restructuring and creditor payment schemes.
Sunil, who represents FTX creditors, has announced payments will begin at 10:00 a.m. Eastern Time on February 18, 2025. Payment completion leads to the cancelation of every due claim. Smaller claimants can now start receiving breaking payments, indicating the repayment cycle’s launch.
The liquidator of FTX Digital Markets PwC announced a new schedule during their recent assessment. Sheets show that these creditors will start receiving their payments before the original expected payment date. Fatigue and Delivery Corporation will make payments based on 118% of the original claimed amount rather than the typical full repayment percentage. The Convenience Class creditors in the Bahamas will benefit positively from these developments.
FTX to Issue USD Payments, Not Crypto, in Settlement Process
FTX must obtain bankruptcy plan approval from U.S. Bankruptcy Court before beginning its settlement activities. The plan officially came into effect on January 3rd, 2025. The company set up the distribution record date for claim holders on that day.
Proceeds from bigger claims will take longer to arrive after the conclusion of the distribution plan. PwC announced that the repaying process will commence during the second quarter of 2025. DST will disburse the payments through its custodial partner BitGo. The company will issue repaid funds in USD fiat currency under its liquidation plan in contrast to using cryptocurrency.
On November 11, 2022, FTX declared Chapter 11 bankruptcy as one of the major players in the cryptocurrency sector. FTX submitted its bankruptcy petition simultaneously in Delaware and the Bahamas, where FTX Digital Markets operated. The FTX collapse initiated an extensive process of litigation regarding asset collection and the claims of creditors. The bankruptcy filing serves essential needs for certain creditors yet the main restructuring tasks remain extensive.
