FTX Revises Settlement Motion After Objections from US Trustee
In a recent court filing, FTX, a bankrupt cryptocurrency exchange, revised its motion for settlement after facing objections from the US Trustee. Despite criticizing the US Department of Justice representatives, FTX debtors acknowledged the concerns raised and proposed revisions to address them.
Main Points:
- Establishing omnibus settlement procedures in complex cases is a routine practice.
- The proposed settlement procedures aim to facilitate quick and efficient resolutions of Small Estate Claims.
- The objections raised by the US Trustee were unfounded, according to FTX debtors.
- Revisions include reducing the maximum Settled Value, incorporating the US Trustee as a third Noticed Party, and committing to file monthly reports of executed settlements.
- The FTX debtors believe the objection should be overruled, and the motion should be granted.
FTX’s Position
The FTX debtors reaffirmed their commitment to maximizing recovery for their creditors and emphasized that compromises and settlements are favored in bankruptcy cases. They argued that the revised settlement procedures are appropriate and beneficial to their estates, aiding in confirming and consummating a Chapter 11 plan while distributing maximum value to stakeholders.
It remains to be seen how the court will respond to the revised settlement proposal and objections raised, which will significantly impact the resolution of litigation claims and the overall progress of the FTX bankruptcy proceedings.
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