U.S. Bankruptcy Court Judge Michael Wiles has approved bankrupt crypto lender Voyager Digital’s plan to sell its assets to crypto exchange FTX US at approximately $1.4 billion, Voyager announced via a blog post on Friday.
Recall that Voyager, which filed for Chapter 11 bankruptcy protection in July accepted FTX US’s $1.4 billion bid to purchase its assets last month after a “highly competitive” auction process.
FTX US’s bid comprises a fair market value of all Voyager crypto assets at a to-be-determined future date, which is estimated to be $1.311 billion at current market prices as of September 26th (the date the bid was accepted). The deal also includes additional consideration, providing an incremental value of $111 million to creditors.
Customers to Receive Payouts in Fiat or Crypto
The final purchase of Voyager’s crypto assets is yet to be determined. The plan will use a 20-day “historical average for the price, a window that will be set at a future point in time.” How much customers will receive depends on this price mechanism, but they will receive their sum in either crypto, USDC, or fiat depending on the nature of their claims.
For instance, only customers who transition to the FTX US platform will be able to receive their sum in crypto while those who do not will receive their payout in cash from the Voyager bankruptcy estates.
FTX US currently does not support Voyager’s native token VGX, on its platform but has offered to purchase all VGX held by Voyager and its affiliates at a floor price of $10 million.
Voyager stated that it would seek a higher bid for VGX but would accept the FTX US bid if it is unable to identify a higher offer for it.
It is worth mentioning that VGX only represents a small fraction of the total value expected to be returned to customers.
Voyager Urges Customers to Vote in Favor of the Plan
Following the approval, Voyager customers will have to vote in favor of the plan before the sale can be completed. The vote will take place until November 29. Voyager is urging its customers to vote in favor of the plan.
“Because we believe the Plan, including the sale to FTX US, maximizes recoveries to Voyager’s creditors, we urge all customers and creditors to vote in favor of the Plan,” Voyager said.
Per the announcement, the bankruptcy Court could confirm the plan in mid-December after the customers’ votes. Then, Voyager and FTX US can close the sale and commence with the process of payouts to customers.
