Creditors are dissatisfied with the inclusion of the S&C exemption clause in the FTX debt repayment amendment

While FTX's newly revised proposal promises "billions of dollars in compensation," creditors are unhappy with specific terms related to the Sullivan & Cromwell (S&C) law firm. FTX announced a new amendment to its debt repayment case on the 7th, which includes a discharge clause. A discharge clause is a clause that exempts some parties from liability if damage is caused during the execution of bankruptcy proceedings. FTX creditor Sunil said that in FTX's case, S&C may have included a clause to exempt itself from any potential liability. Sunil is a member of FTX's largest creditor group, the FTX Customer Ad-Hoc Committee, which has more than 1,500 FTX creditors. (Cointelegraph) Earlier today, FTX and its affiliated debtors submitted a revised reorganization plan and disclosure statement to the U.S. Bankruptcy Court in Delaware on Tuesday. The plan is expected to centrally distribute almost all of FTX's assets at the time of bankruptcy in November 2022 to customers and other creditors around the world. FTX expects the total value of property collected, converted to cash and available for distribution to be between $14.5 billion and $16.3 billion. The amount includes assets controlled by Chapter 11 debtors and assets controlled by the Joint Official Liquidators of FTX Digital Markets, Ltd. (Bahamas), the Securities Commission of the Bahamas, and the Joint Official Liquidators of FTX Australia. FTX is understood to owe customers and other non-government creditors about $11 billion. The additional cash will be used to pay interest to the company's more than 2 million customers, a rare result because creditors in U.S. bankruptcy cases typically receive only a fraction of the face value.