FTX plans to solicit creditors to vote on restructuring plan, and major stakeholders have not raised any objections

At a bankruptcy hearing on Tuesday, FTX's lawyers and creditors debated a disclosure statement involving a reorganization plan. The disclosure statement provides creditors with more information to make decisions about the exchange's reorganization plan. U.S. Bankruptcy Court Judge John Dorsey in Delaware will have to approve the plan and the disclosure statement, and then creditors will vote on the plan before a confirmation hearing later this year. Andrew Dietderich, a lawyer representing FTX in the bankruptcy proceedings, said the plan was "largely consensual." "The relevant fact today is that no major stakeholders we have approached have raised objections," Dietderich said at Tuesday's hearing. He said one of the purposes of the vote was to get feedback from creditors. FTX announced a reorganization plan in May that allows creditors with claims of less than $50,000 to be eligible for 118% compensation after court approval. Some creditors opposed the plan and said they should be paid in kind in cryptocurrency rather than in dollar value when the trading platform filed for bankruptcy in November 2022. (The Block)