• FTX’s lawyers have filed a response to the creditor panel’s draft reorganization plans, disapproving of their claims on FTX’s lack of engagement.
• The dispute erupts between FTX’s administrators and creditor panel in the wake of the draft reorganization plan filed last month by FTX’s new management team.
• The former CEO and founder Sam Bankman-Fried’s criminal trial is set to commence on October 2.

FTX Rebuts Creditor Panel’s Statement

The lawyers of the bankrupt crypto exchange FTX which filed for a Chapter 11 in November and collapsed thereafter, have filed a response to the creditor panel’s draft reorganization plans, disapproving of their claims on FTX’s lack of engagement. The response was submitted Wednesday at the US district court of Delaware.

Committee Pleadings Criticized

The lawyers criticized the Official Committee of Unsecured Creditors’ claims accusing FTX debtors over lack of engagement while drafting the reorganization plan. “It is therefore with substantial disappointment that the Debtors are compelled to respond to the inaccurate and unfair statements that riddle the Committee Pleading.”

Dispute Between Administrators & Creditor Panel

The dispute erupts between FTX’s administrators and creditor panel in the wake of the draft reorganization plan filed last month by FTX’s new management team under John J Ray III leadership. This plan gave claimants an option to hold equity securities, tokens or other interests in an offshore company. However, moments after this exit plan was revealed, FTX’s official creditor committee responded claiming that despite its repeated requests and previous promises from team, it “did not have a single call or meeting” with them over this matter.

Unprofessional Conduct Alleged by Debtors

In its rebuttal,the debtors noted they were frustrated with many committee members who refused to meet them personally and some even remained off-screen during Zoom meetings. They further alleged unprofessional conduct amongst certain members which impacted communication flow between Debtors & Committee.

Criminal Trial Commences October 2nd

FTX former CEO & disgraced founder Sam Bankman-Fried will face his criminal trial beginning October 2nd when he’ll receive a variety charges including life sentence potential if convicted guilty as charged .