Creditors are dissatisfied with the inclusion of the S&C exemption clause in the FTX debt repayment amendment

BlockBeats news, on May 8, Cointelegraph reported that although FTX's newly revised proposal promised "billions of dollars in compensation", creditors were dissatisfied with specific terms related to the Sullivan & Cromwell (S&C) law firm. FTX announced a new amendment to the debt repayment case on the 7th, which included a discharge clause. The discharge clause means that if damage is caused during the execution of the bankruptcy procedure, some parties can be exempted from liability.

FTX creditor Sunil said that in FTX's case, S&C may have included a clause to exempt itself from any potential liability. Sunil is a member of FTX's largest creditor group, the FTX Customer Ad-Hoc Committee, which has more than 1,500 FTX creditors.

Earlier today, FTX and its affiliated debtors submitted a revised reorganization plan and disclosure statement to the U.S. Bankruptcy Court in Delaware on Tuesday. The plan is expected to distribute to customers and other creditors around the world, substantially all of FTX's assets at the time of its bankruptcy in November 2022. FTX estimates that the total value of the property collected, converted into cash and available for distribution will be between $14.5 billion and $16.3 billion.