Collapsed cryptocurrency exchange FTX and its affiliated debtors have submitted an amended Plan of Reorganization and accompanying Disclosure Statement.
The revised plan, submitted to the United States Bankruptcy Court for the District of Delaware, comes 17 months after the troubled crypto exchange collapsed, and reveals that creditors can expect to receive most of what they are owed, with some potentially receiving more.
The company filed for Chapter 11 bankruptcy in November 2022, leading to insolvency expert management after the closure of its crypto-trading platform by Sam Bankman-Fried, who was later found guilty of fraud.
FTX has disclosed owing approximately $11.2 billion to creditors and estimates having between $14.5 billion and $16.3 billion available for distribution.
The company's new chief executive officer, John Ray, expressed confidence in the plan, stating that it provides an "unbelievable result" for creditors.
The plan commits to full debt repayment plus interest, but shareholders may not receive any proceeds given the claims from US regulators and the Internal Revenue Service, according to Bloomberg.
The approval of the plan now rests with US Bankruptcy Judge John Dorsey, with a hearing scheduled for late June. If approved, the plan will enable FTX to emerge from bankruptcy and move forward with its operations.