Voyager Customers Could Get 72% if Bankruptcy Sale Succeeds

blockchain.news:

Bankrupt crypto lender Voyager may repay customers 72% of their accounts' value if the company can sell itself to digital-asset exchange FTX US.

FTX US was able to secure a two-week-long auction for Voyager under a deal connected to court approval of the creditor payment plan, according to lawyers.

However, Voyager can choose to cancel the deal if they are able to get a higher deal that will pay its customers more. US Bankruptcy Judge Michael E. Wiles approved this agreement on Wednesday.

Wiles has also urged Voyager to a «fiduciary out,» which is a standard bankruptcy clause. It allows companies under protection from the bank to accept higher offers until a sale is final.

Voyager bankruptcy attorney Christine Okike has told Wiles that FTX is currently the «only viable alternative» for the company. Still, they have agreed to change how the fiduciary out is worded to ensure a better offer can be considered.

According to Voyager, Wiles has been requested to provide permission to send the payout plan to creditors and customers for a vote. Following that, Wiles has also been asked to approve the sale if creditors vote in favour.

Voyager's sale to FTX has been valued at about $1.4 billion, of which $51 million is in cash. Also, part of the sale, FTX will be moving customers onto its platform.

Under the payout plan, customers who had digital currencies on Voyager's platform can be paid in that form once FTX takes over if FTX supports that type of currency, lawyers told Wiles.

The purchase has come after several earlier attempts by the FTX to bail out or acquire Voyager, according to Bloomberg. 

New York-based Voyager had about 3.5 million users at the end of March and 1.19 million funded accounts.

Voyager filed for bankruptcy