FTX US customers may not get all funds back in Chapter 11 plan
FTX debtors-in-possession have filed a draft plan of reorganization as part of the Chapter 11 process. It has yet to receive approval from any of the appropriate stakeholders, but it does start to lay out how the debtors hope to handle this bankruptcy. The draft plan divides claims against the estate into several different categories, including ‘priority’ and ‘secured’ which are intended to be repaid in full. There are also categories for both ‘dotcom’ customers and ‘US’ customers. Both of these groups are intended to be paid pro rata out of pools of assets from their respective exchanges. The pools for both US and international customers seem expected to end up short of enough to pay claims fully in cash, and both pools will potentially make an additional “shortfall claim” against the broader “general” pool of assets, in an attempt to make up the funds lost thanks to the alleged misappropriation of assets by...