Rumor: FTX Reorganizes Team, Potential Interest Payment to Creditors with Recovery Rate Over 100%

Rumor: FTX Reorganizes Team, Potential Interest Payment to Creditors with Recovery Rate Over 100%

Rumor: FTX Reorganizes Team, Potential Interest Payment to Creditors with Recovery Rate Over 100%

The founder of decentralized gaming platform Goated and former intern at eGirl Capital, G3, shared on X platform that there are rumors claiming that due to the smooth liquidation of FTX’s remaining assets, there is a high probability that the recovered funds will be able to fully repay the creditors’ claims. Therefore, the reorganization team may pay additional interest to the creditors, which means that the creditors have a chance to recover 110% to 120% of the face value of their claims.

According to the trading price on the Claim Market, the trading price of FTX’s claims has currently reached close to 90%.

However, is it really possible to immediately pay the creditors in this situation? In fact, under US bankruptcy law, if the debtor’s assets are sufficient to repay its debts, or if the court deems it appropriate to pay interest, then in certain cases, the creditors may indeed receive additional interest payments. Therefore, it is possible to calculate interest on claims during the bankruptcy period.

But it should be emphasized that the specific situation still depends on the conditions of the individual case. Whether the FTX bankruptcy case will pay interest to the creditors still needs to consider the specific terms of the bankruptcy reorganization plan and the court’s ruling.

However, for those who hold non-US dollar (or stablecoin) assets in FTX, even the payment of interest may not be enough to fill the gap. According to a previous report by Zombit, Judge John Dorsey of the Delaware Bankruptcy Court has ruled at a hearing that the amount of user claims must be calculated based on the asset prices on the day the company filed for bankruptcy protection (November 11, 2022), when the price of Bitcoin was only about $17,000, and now the price of Bitcoin has tripled. In other words, for those users who have cryptocurrency stuck in FTX, even a 120% payout cannot achieve true “full compensation”.