Sunday, November 27, 2022
HomeTechnologyFTX US succeeds in asset auction for Voyager Digital

FTX US succeeds in asset auction for Voyager Digital

On September 27, bankrupt crypto lender Voyager Digital announced on its twitter platform that crypto exchange FTX had won an auction for its assets in a deal worth around $1.42 billion.

FTX US bid consists of a fair market value of all Voyager cryptocurrencies at a future date, estimated to be $1.31 billion at current market prices, plus an extra consideration anticipated to provide around $111 million in incremental value, according to a statement from Voyager.

 

The company also stated that its claims against hedge fund Three Arrows Capital will be retained by the bankruptcy estate, which will distribute any recoveries to the estate’s creditors.

FTX US’s bid optimizes value while minimizing the remaining time of the Company’s restructuring by providing a clear route forward for the Debtors to complete a chapter 11 plan and return value to its customers and other creditors. After the conclusion of the Company’s chapter 11 cases, users will be able to trade and store cryptocurrencies on FTX US’s market-leading, safe trading platform.

The United States Bankruptcy Court for the Southern District of New York will be asked to approve the asset purchase agreement between Voyager Digital LLC and FTX US on October 19.

 The deadline for filing an objection to the deal is October 12, at 4:00 p.m. standard Eastern Time. The sale to FTX US will be completed in accordance with a chapter 11 plan, which must be approved by a majority of creditors and satisfy other standard closing requirements. 

The auction comes after Voyager’s voluntary reorganization process, which began on July 5 this year, and aims to give clients the most value possible. In order to achieve this goal, Voyager has been engaged in a dual-track process since the Company’s chapter 11 filing, taking into account both a prospective sale and a solo restructuring.

Voyager received numerous offers considering sale and reorganization alternatives in accordance with the procedure described in court papers, held an auction, and, based on the outcomes of the auction, decided that the sale transaction with FTX is the best option for Voyager stakeholders.

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