FTX creditors object to bankruptcy reorganization plan
The group of creditors, led by Sunil Kavuri, cited several concerns, including forced taxation, which would compromise creditors’ best interests.
A group of FTX creditors, led by Sunil Kavuri, has filed an objection to FTX’s bankruptcy reorganization plan. They reject it on several grounds, including the assertion that it does not serve the best interests of the creditors.
The creditors argued that being reimbursed with cash would trigger a taxable event, causing the creditors to incur undue costs. Reimbursement of assets in-kind was listed in the objection as a possible remedy.
Moreover, the creditors objected to the release of funds to the debtors—the FTX estate—citing Chapter 11 law, ultimately claiming that the FTX bankruptcy estate was attempting to distribute stolen assets.
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Author: Vince Quill
