Bahamas Creditors Rejoice: FTX’s Generous 9% Interest Payments Are Coming! 🎉💸

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Ah, the illustrious FTX, poised to repay its creditors in the Bahamas by the grand date of February 18, 2025, with a tantalizing 9% interest! A veritable milestone in the grand theatre of restructuring, wouldn’t you say?

In a move that can only be described as both audacious and mildly amusing, FTX Digital Markets has proclaimed that it shall commence the repayment of creditors in the Bahamas, those fortunate souls with claims of up to $50,000, by the aforementioned date. The Convenience Class creditors, bless their hearts, will be graced with a 9% annual interest payment, calculated on claim values established on the fateful day of November 11, 2022. A significant creditor check payment, you see, is set to initiate after what feels like an eternity of restructuring and payment schemes. Who knew financial recovery could be so thrilling?

Our dear Sunil, the ever-optimistic representative of FTX creditors, has cheerfully announced that payments will commence at the ungodly hour of 10:00 a.m. Eastern Time on February 18, 2025. The completion of these payments will, in a rather dramatic twist, lead to the cancellation of every due claim. Smaller claimants, those brave souls, can now expect to receive their breaking payments, heralding the grand launch of the repayment cycle. 🎊

Meanwhile, the liquidator of FTX Digital Markets, PwC, has unveiled a new schedule during their recent assessment, which, let’s be honest, sounds like a riveting affair. The sheets reveal that these creditors will start receiving their payments ahead of the original expected date. In a delightful turn of events, Fatigue and Delivery Corporation will make payments based on 118% of the original claimed amount, rather than the usual full repayment percentage. The Convenience Class creditors in the Bahamas are positively basking in the glow of these developments. Who knew financial misadventures could lead to such unexpected windfalls?

FTX to Issue USD Payments, Not Crypto, in Settlement Process

Now, let us not forget that FTX must first obtain the illustrious bankruptcy plan approval from the U.S. Bankruptcy Court before embarking on its settlement activities. The plan, which officially came into effect on January 3rd, 2025, has set the distribution record date for claim holders on that very day. How delightfully bureaucratic!

Proceeds from the larger claims, however, will take their sweet time to arrive after the conclusion of the distribution plan. PwC has announced that the repayment process will commence during the second quarter of 2025. Payments will be disbursed through its custodial partner, BitGo, and in a shocking twist, the company will issue repaid funds in good old USD fiat currency, rather than the cryptocurrency that once promised so much. Ah, the irony! 💰

On November 11, 2022, FTX, once a titan in the cryptocurrency sector, declared Chapter 11 bankruptcy. The company submitted its bankruptcy petition simultaneously in Delaware and the Bahamas, where FTX Digital Markets operated. The collapse of FTX has initiated a rather extensive process of litigation regarding asset collection and the claims of creditors. While the bankruptcy filing serves essential needs for certain creditors, the main restructuring tasks remain as extensive as ever. One can only hope for a happy ending in this financial farce!

 

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2025-02-05 08:54