FTX claims have risen above 100 cents on the dollar following the estate’s draft recovery plan that estimates the majority of creditors will see a recovery rate of 118%.
“It's absolutely unbelievable,” said Thomas Braziel, a partner at 117 Partners and 507 Capital and an investor in distressed assets. “I mean, Lehman was 141 cents on the dollar, and that took 10 years. This is 142% as the projected high number. For the majority in terms of number of creditors, there's still some stuff to iron out but claims are pricing over 100; even small claims are basically pricing up to 100.
He argued that since distressed asset investors own a significant portion of the docket and that there’s a large percentage of claims in stablecoins, it’s unlikely there will be a successful pushback on the plan. “It kind of puts a nail in the coffin of guys trying to push for crypto upside,” he said.
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