The reorganization plan is expected to take effect in early January 2025; distributions will begin no later than 60 days thereafter

Wilmington, Delaware, November 21, 2024 /PR Newswire/ -- FTX Trading Ltd. (d.b.a. FTX.com) and its affiliated debtors ("FTX" or "Debtors") today announced that FTX is nearing the completion of the final prerequisites for the court-approved Chapter 11 reorganization plan ("Plan") to take effect, paving the way for FTX to commence distributions to creditors and customers.

John J. Ray III, CEO and Chief Restructuring Officer of FTX Debtors, stated: "We are pleased to announce that we will begin distributions in early 2025. The established timeline reflects the expertise and ongoing efforts of the professional team supporting the Debtors, who have recovered billions of dollars on behalf of FTX's creditors and customers. As we continue to take steps to maximize recovery, we are working diligently to finalize arrangements with our distribution agents and return funds to creditors and customers as soon as possible."

FTX provided the following updates regarding the anticipated distribution timeline:

In early December, the Debtors expect to finalize arrangements with professional distribution agents who will assist FTX in distributing recoveries to customers in supported jurisdictions worldwide ("Distribution Agents"). At that time, the Debtors will provide instructions to customers to establish approved accounts with the Distribution Agents on the existing customer portal.

By the end of December, the Debtors expect to announce the exact effective date following the court's order approving the disputed claims reserve, which is a prerequisite for distribution according to the confirmation order.

The Debtors currently anticipate that the Plan will take effect in early January 2025. According to the confirmation order, the initial distribution will be made within 60 days to holders of claims allowed in the Plan facilitation category ("Initial Distribution"). The record date for the Initial Distribution will be the same as the effective date.

Customers should note that to be eligible for a distribution on the Initial Distribution Date, customers must establish an approved account with the Distribution Agents, complete KYC verification, and submit the required tax documents before the record date for distribution.

Claim traders should be aware that, according to Section 7.4.1 of the Plan, claims traded within 45 days prior to the record date may not be reflected on the claims register before the close of business on the record date, and distributions for those claims may be allocated to the transferor.

Source $FTT