- FTX expects its Chapter 11 Plan of Reorganization to be effective in early January 2025, paving the way for creditor and customer distributions to begin.
- Customers must establish an approved account with a distribution agent, complete KYC verification, and submit required tax forms before the distribution record date to receive the initial distribution within 60 days after the Plan’s effective date.
- Claims traded within 45 days prior to the distribution record date may not be reflected on the claims register, potentially resulting in distributions being made to the transferor.
FTX Trading Ltd. (d.b.a. FTX.com) has announced an updated timeline for creditor and customer distributions as part of its bankruptcy proceedings.
Expected Plan Effective Date
The debtors expect the Chapter 11 Plan of Reorganization to become effective in early January 2025. This will pave the way for the first distribution to creditors and customers.
The effective date is pending finalization of the Disputed Claims Reserve Amount by the Bankruptcy Court. This is a precondition for distributions under the Confirmation Order.
Initial Distribution Date
Per the Confirmation Order, the first distribution will occur within 60 days after the Plan’s effective date. This Initial Distribution will go to holders of allowed claims in the Plan’s Convenience Classes.
The distribution record date will be the same as the Plan’s effective date. Customers must complete account setup with a distribution agent, KYC verification, and submit required tax forms prior to the record date to be eligible.
Distribution Agent Arrangements
In early December, FTX expects to finalize arrangements with specialized distribution agents who will assist in sending recoveries globally.
At that time, FTX will provide instructions for customers to establish approved accounts with the distribution agents through the existing customer portal.
Claims Trading Impacts
Claims traded within 45 days of the distribution record date may not be reflected in time for the Initial Distribution. Distributions on these claims could go to the original claim holder.
Additional Information
Full bankruptcy court filings are available on the case website. This includes the Plan, Confirmation Order, and other case documents.
FTX is represented by Sullivan & Cromwell LLP and Alvarez & Marsal North America LLC.
