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FTX asks court for 120-day extension of exclusive plan periods
By Sarah Lizee
Olympia, Wash., Sept. 7 – FTX Trading Ltd. is seeking a 120-day extension of its exclusive periods to file and solicit votes on a Chapter 11 plan, according to a motion filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.
The company asked the court to extend the exclusive plan filing period through Jan. 5 from Sept. 7 and the exclusive solicitation period through March 5 from Nov. 6.
On July 31, the debtors filed their draft proposed plan of reorganization and accompanying draft term sheet.
FTX said this was the result of months of discussions with the official committee of unsecured creditors’ professionals and with creditor groups and reflects consensus on all but a limited list of open issues.
The primary purpose of the draft plan is to provide a transparent basis for negotiation of the open issues among the debtors’ diverse sets of stakeholders, FTX said.
“Although most of the open issues are matters with respect to which different creditors and customer groups have different interests and opinions, the debtors earnestly believe the plan of reorganization for these Chapter 11 cases can and should be largely consensual,” the company said in the motion.
FTX said creditor meetings are scheduled in September as a critical step to filing a value-maximizing plan of reorganization and disclosure statement before the end of the year.
To facilitate the enforcement of any confirmed plan of reorganization in the Bahamas, the debtors are engaged in mediation with the joint provisional liquidators for FTX Digital Markets.
“Incredible progress has been made, but more time is needed,” the company said.
“Only the debtors can complete this puzzle successfully because only the debtors have a fiduciary duty to all the competing stakeholders.”
A hearing is scheduled for Oct. 4.
FTX has headquarters in the Bahamas and filed Chapter 11 bankruptcy on Nov. 11, 2022 under case number 22-11068.
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