FTX filed for Chapter 11 bankruptcy protection on November 11, 2022. The purpose of a Chapter 11 case is to come up with a plan of reorganization that is acceptable to the debtor (the bankrupt company) and its creditors. As a result of the reorganization, an insolvent company may end up being owned by its creditors rather than its original owners. If a plan cannot be confirmed, then the case either converts to a Chapter 7 liquidation or is dismissed, restoring the company to how it was before it filed for bankruptcy.
Chapter 11 bankruptcy cases take an average of 17 months to be resolved, but can sometimes take up to 5 years. So I'll set a tentative close date about 2 years from now, but will extend this market until the case is resolved.
1,000🏅 Top traders
| # | Trader | Total profit |
|---|---|---|
| 1 | Ṁ69 | |
| 2 | Ṁ66 |
Officially it's a reorganization plan, although FTX is paying out all the money to its creditors and it's unlikely that FTX will still exist afterward, so I feel like it's basically a liquidation? I'm going by the legal terms used, though.
FTX Trading Ltd. (d.b.a. FTX.com) ("FTX") and its affiliated debtors (the "FTX Debtors") today announced its Court-approved Chapter 11 Plan of Reorganization (the "Plan") will become effective on January 3, 2025...
