This plan is still in a preliminary stage. Voyager’s bankruptcy payout plan will not be finalized until it is approved by Voyager’s creditors and is approved by the bankruptcy judge.
According to court documents, Voyager Digital customers may be able to recover 72% of their accounts’ value under a tentative agreement with FTX US.
During a hearing in the United States bankruptcy court, Michael Wiles, a judge, stated that the tentative sale would not become final until Voyager’s creditors approve it. He also approved the bankruptcy payout plan.
“If the plan fails, there is no part of this agreement that will survive.”
A clause known as a “fiduciary-out” allows Voyager the right to cancel the agreement with FTX if any offers are made that provide a better outcome.
This clause is commonly included in bankruptcy cases. It allows companies to make higher offers until the sale is completed to ensure creditors receive the most favorable possible deal.
Voyager previously suggested that customers might eventually switch to the FTX platform After having secured the winning bid, the exchange had placed the winning bid on September 27th at a value of approximate\$1.4 billion.on. This was after a two-week bidding period.
The tentative plan by FTX would allow priority claims to be fully paid and allow account holders to recover approximately 72% from their accounts, stored since July 1.
It doesn’t include any funds it might recoup as part of its claim against Three Arrows Capital (3AC), after the crypto hedge fund had failed to repay its loan repayments for Voyager.
Voyager filed Chapter 11 bankruptcy July 4th due to liquidity problems following the default by Three Arrows Capital’s crypto hedge fund Three Arrows Capital.
Voyager stated that the bid from FTX USA was comprised of the fair value of its crypto holdings at a yet-to-be determined date. This was, as of Sept. 26, at $1.3 billion. There is also an additional consideration of up to $111 million.