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FTX Debtors Revise Settlement Proposal After Objection From U.S. Trustee
The latest proposal will see the debtors include the U.S. Trustee as a noticed party and reduce the maximum settled value for claims from the earlier $10 million to $7 million.
Updated Aug 21, 2023, 3:12 p.m. Published Aug 21, 2023, 6:23 a.m.
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Bankrupt crypto exchange FTX has revised its motion for settlement after the U.S. Trustee objected to an earlier motion, according to a court filing Sunday.
Despite criticizing the U.S. Trustee as the "sole objector to the Motion" seeking to "inject itself into a routine settlement process that is already adequately safeguarded by two different creditor committees," the FTX debtors said they were proposing revisions in an effort to address the concerns.
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The latest proposal will see the debtors include the U.S. Trustee as a noticed party and reduce the maximum settled value for claims covered by the procedures from the earlier $10 million to $7 million. Debtors will also file monthly reports of executed settlements. Any objections from the "noticed parties" would need to be resolved or settled through an order of the court before the claim process can go through.
The two creditor committees are the Official Committee of Unsecured Creditors and the ad hoc committee of international customers.
The U.S. Trustee had objected to the earlier motion saying $10 million is far too high to constitute a “small” claim without even providing adequate notice as to the nature of the claims.
FTX, formerly the world's third largest digital assets exchange, went bankrupt in November last year.
Read More: FTX Fires Back at Creditors 'Willing to Gamble Estate Assets on Higher Returns'
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