Eversheds Sutherland partner and co-global head of corporate crime and investigations Sarah Paul weighs in on the settlement reached for the ad hoc committee of non-U.S. customers of FTX.com.
We're really just thrilled to have reached the settlement on behalf of our clients. Um You know, as I, as I mentioned, this has been hard fought. Um We've spent months negotiating and advocating for our legal position and this really is representing the culmination of our efforts so far. Um You know, as, as I think everyone who's watching the, the criminal trial of Sam Bateman Fried has seen, you know, the FTX do customers were really the victims of mass misappropriation of their assets. And so that's why we on behalf of the ad hoc committee filed litigation in the bankruptcy proceeding, seeking a finding that these assets are customer property and should be available for distribution only to F TX dot com customers and not the general unsecured creditors of the F TX debtors. That's the position we've been a for from the beginning. And so now the settlement and planned support agreement that we've reached includes a very favorable resolution of this critical issue. We have agreed to resolve our litigation in connection with the plan framework that's expected to result in the distribution, approximately 90% of the distributable value of the FTX debtors to be paid to customers. Um So we're very, very happy with that result. We were also able to advocate successfully for an efficient mechanism for favorably resolving eligible FTX dot com customers preference exposure. Um So the agreement essentially set the allocation of value so that all stakeholders could be incentivized and aligned to maximize the value to be distributed to all creditors. It's, it's a great result.