According to a court filing about the bankrupt crypto exchange FTX has made revisions to its proposed settlement plan in response to objections raised by the U.S. Trustee.
In a filing submitted on Sunday, FTX highlighted the U.S. Trustee’s role as the primary objector to the motion, alleging an unwarranted offense in a current settlement process that is already effectively supervised by two distinct creditor committees.
The Official Committee of Unsecured Creditors (UCC) and the ad hoc Committee (AHC) of international customers constitute the two creditor committees that have provided input into and are supportive of the proposed Settlement Procedures.
After this criticism, FTX’s debtors have expressed their commitment to improve the proposal to address the issues that have been raised.
In the latest proposal, the debtors will involve the U.S. Trustee as an acknowledged party and decrease the maximum settled value for claims falling within the specified procedures.
This modification revises the earlier specified sum of $10 million to $7 million. Before the claim process can proceed, any objections raised by the “noticed parties” must be addressed and resolved through a court order.
The document stated, “Finally, the Debtors have committed in the Revised Settlement Procedures to filing monthly reports disclosing consummated settlements in order to provide still more transparency into these routine settlements.”
The U.S. Trustee raised an objection to the previous motion, arguing that the $10 million amount is excessively large to be considered a “small” claim. This objection was made without sufficient notice regarding the nature of the claims.
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