YEREVAN (CoinChapter.com) – The cryptocurrency exchange FTX reorganization plan is in process as part of the bankruptcy proceedings, the officials say. In detail, the company is preparing to present a revised reorganization plan to the court in mid-December.
FTX Reorganization Plan To Benefit Investors
FTX anticipates this plan will impact the fate of unsecured creditors significantly. The Official Committee of Unsecured Creditors has already responded to the FTX 2.0 Customer Ad Hoc Committee, providing details about the proposed amendments to the reorganization plan.
The Committee recognizes the differing perspectives on asset valuation and distribution. It also highlights that the FTX proposal plan aims to balance stakeholders’ interests.
Additionally, ongoing activities, including a potential acquisition by the financial services firm Perella Weinberg, are expected to unfold during the bankruptcy proceedings. These developments and concepts, like recovery rights tokens, are under evaluation and will be formally submitted for court approval.
This FTX reorganization is part of the exchange’s broader strategic review of its global assets, aiming to maximize recoverable value for stakeholders. The involvement of Perella Weinberg and the consideration of novel concepts like recovery rights tokens could influence the entire FTX bankruptcy process.
What about the taxes?
The latest development contained no new information on FTX’s ‘relationship’ with the Internal Revenue Service (IRS). The latter initially demanded $24 billion from the bankrupt exchange. However, the latter plans to shave the taxes down to zero.
Despite the $24 billion gap between the estimations, the reorganization has not yet resolved the tax issue. The new FTX reorganization plan could also shed more light on the tax situation.
As reported in the previous FTX review, The IRS began auditing FTX’s taxes in February 2023 and initially estimated the claims at $44 billion in April, later revising this to the mentioned $24 billion in November. FTX argues that the IRS’s estimates are baseless and threaten to halt the confirmation of their Chapter 11 plan and delay distributions to creditors and customers.
The IRS claims filed to date nominally total approximately $24 billion—more than fifty times what the debtors ever earned, hundreds of times more than what could plausibly be owed by the debtors, and several times greater than the total distributable value that is currently available to creditors.
said FTX representatives on Nov 29.
According to FTX, their tax returns show no liability and over $11 billion in net taxable losses, contradicting the IRS’s claims. FTX plans to file an amended Chapter 11 plan, or the FTX reorganization plan, in mid-December and start soliciting votes in March to confirm the plan by June.
