FTX debtors and UCC conflict over asset management in restructuring

FTX debtors, led by CEO and chief restructuring officer John J. Ray III, have expressed disapproval of merchants and market makers throughout the Official Committee of Unsecured Collectors (UCC) who’re aiming to realize authority over belongings. They imagine the UCC’s plan to speculate almost $2.6 billion in money reserves in short-term Treasurys is a foul thought amid the FTX 2.0 draft restructuring plan.

In a court docket submitting dated August 9, FTX issued a response to the UCC’s commentary concerning the reorganization and time period sheet proposal. FTX strongly criticized the UCC’s pursuit of asset management, notably because it beneficial that debtors allocate almost $2.6 billion from money reserves into short-term Treasurys, aiming to cowl skilled charges amounting to as a lot as $330 million.

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