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

On May 8, 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 disclaimer. The disclaimer means that if damages are 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. 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 centrally distribute to customers and other creditors around the world almost all of FTX's assets when it goes bankrupt in November 2022. FTX expects the total value of the property collected, converted into cash and available for distribution to be between US$14.5 billion and US$16.3 billion.