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FTX applies for extension to respond to $470 million overseas debt freeze due to creditor opposition
Summary: FTX's liquidation team has applied for an extension in response to over 90 objections from creditors regarding its $470 million cross-border payment freeze plan, according to reports. The plan aims to designate 49 jurisdictions, including China, as 'restricted areas,' halting compensation payments to relevant creditors. FTX stated that this is to avoid potential legal risks, ...
FTX's liquidation team has applied for an extension in response to over 90 objections from creditors regarding its $470 million cross-border payment freeze plan, according to reports. The plan aims to designate 49 jurisdictions, including China, as 'restricted areas,' halting compensation payments to relevant creditors. FTX stated that this is to avoid potential legal risks, especially criminal liability for executives. Currently, Chinese creditors account for 82% of the claimed amount (approximately $380 million). However, the plan has faced strong opposition, with Chinese creditor representative Weiwei Ji organizing hundreds of investors for collective rights protection. Another creditor, Sunil Kavuri, revealed that around $1.4 billion in claims are still pending. A related hearing is scheduled for this Tuesday.
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Link: FTX applies for extension to respond to $470 million overseas debt freeze due to creditor opposition [Copy]
