•FTX’s new legal team has declared that the “dumpster fire is out”, at a hearing before U.S. Bankruptcy Court Judge John D. Dorsey of the District of Delaware
•The company has recovered $7.3 billion in assets, up from $5 billion in January
•FTX plans to file a preliminary plan of reorganization in July and set a customer bar date by September
FTX Legal Team: ‘The Dumpster Fire Is Out’
At a hearing on Wednesday, lawyers for the now-defunct exchange described it as a “digital Potemkin village” run by former CEO Sam Bankman-Fried. The legal team expressed their confidence that FTX’s situation had been stabilized and that the dumpster fire was put out.
Lead bankruptcy attorney Andy Dietderich reported that FTX had recovered $7.3 billion in mostly liquid, distributable assets. This figure was nearly $2 billion more than what lawyers reported at the last hearing in January.
Preliminary Plan of Reorganization
Dietderich informed the court that FTX planned to file its preliminary plan of reorganization in July and also set a customer bar date by the end of September which will be done using an online portal for customers to submit claims against FTX.
Although Dietderich made no definitive statement on whether or not FTX would reopen its exchange, he mentioned that restarting operations was one option among many they were considering while dealing with asset recovery and customer claims filing processes.
Overall, it appears FTX’s new legal team is making progress towards resolving outstanding issues for creditors and customers alike as they work to build balance sheets from scratch and track down assets for customer recovery with hopes to have everything settled soon so operations can resume or other options can be considered if necessary.