In a significant development for the crypto industry, a Delaware bankruptcy court has approved a plan for FTX to return more than $14 billion worth of assets to its creditors. The embattled cryptocurrency exchange, which filed for bankruptcy protection in November 2022, previously estimated that it owed creditors around $11.2 billion. The approved plan will see 98% of creditors receiving 119% of the value of their allowed claims as of the bankruptcy filing date, reflecting a remarkable recovery for affected parties.
Recouping Billions for Distribution
Manoj Pillay Sandrasegara, Smitha Menon, Lionel Leo and Stephanie Yeo, WongPartnership LLP
This is an extract from the 2025 edition of GRR's The Asia-Pacific Restructuring Review. The whole publication is available here.
The FTX Group, an international cryptocurrency exchange platform, spectacularly collapsed in November 2022, resulting in FTX Trading Limited and 101 affiliated companies filing for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court in Delaware. The Australian arm of the FTX group, FTX Australia Pty Ltd (‘FTX Aust’) and FTX Express Pty Ltd (‘FTX Express’) (collectively the ‘Companies’) was placed into administration in Australia shortly before the Chapter 11 filing.
1. The Joint Official Liquidators of FTX Digital Markets Ltd. (Brian Simms KC, Peter Greaves and Kevin Cambridge) (“the JOLS”) have entered into a Global Settlement Agreement (“GSA”) with the Chapter 11 Debtors of the FTX Companies ( approximately 130 FTX Companies which filed for Chapter 11 on 11th November 2022).
The EU directive harmonising certain aspects of insolvency law, a Propo
It is a rare occasion that one can be assured with certainty that, if they file a motion with a bankruptcy court, it will be granted. But, in the Third Circuit, that is exactly what will happen if a creditor or other party in interest moves for an examiner to be appointed under Section 1104(c) of the Bankruptcy Code. Once considered to be within the discretion of a bankruptcy court “as is appropriate,” the appointment of an examiner is now guaranteed if the statutory predicates are fulfilled according to the Third Circuit Court of Appeals.
Alice Belisle Eaton and Billy Clareman Discuss Latest Restructuring
Developments at PLI Event
Practising Law Institute’s “Recent Developments in Distressed Debt, Restructurings,
and Workouts 2024” featured restructuring partner Alice Belisle Eaton and
litigation partner Billy Clareman. Co-chair Alice delivered opening remarks and
spoke on “Market Update: Distressed Debt and Restructurings,” “Corporate
Governance, Officer and Director Risks and Claims in Distressed Situations” and
HFW DISPUTES DIGEST 2023
Welcome to the second annual Disputes Digest, in which we collate our 2023 global HFW LITIGATION and International Arbitration publications in one place.
This edition includes updates from across our Disputes arena, including England and Wales, BVI, AsiaPac, and the Middle East.
2023 Restructuring & Insolvency Year in Review Year starts with fears of banking collapse contagion State-backed rescue deal for Credit Suisse announced 10 March 19 March Silicon Valley Bank, centred in California and focussed on funding venture capital and startups, was shut down by its local regulator on 10 March 2023 with the Federal Deposit Insurance Corporation appointed as receiver and the UK bank was sold to HSBC over the course of a weekend. Crypto-exposed Silvergate Bank and Signature Bank both followed suit – all within the span of five days.
This article originally appeared on Law360.
The uptick in bankruptcy cases will mean more work for insolvency professionals who specialize in asset tracing. Some of the most interesting work will arise in cases where companies engaged in significant fraud.
Each bankruptcy cycle has these cases. In 2001, Enron Corp. filed for bankruptcy. In 2008, there was Bernie Madoff. The latest example is FTX Trading Ltd.