Voyager Digital announced on Friday that a bankruptcy court has approved the purchase agreement with cryptocurrency exchange FTX U.S.
On Friday, Voyager Digital announced that their purchase agreement with crypto exchange FTX U.S. was approved by a bankruptcy court. The deal, which has not been finalized yet, is worth $1.4 billion. If the deal proceeds, Voyager’s clients may be able to recover 72% of the value of their accounts. The announcement is just one step in Voyager’s ongoing battle with bankruptcy proceedings. As the market currently stands, FTX will pay $1.422 billion to Voyager, with around $1.3 billion of the total sum going to acquire the assets. The figure does however not include funds that it may recover from Three Arrows Capital which defaulted on its loan repayments to Voyager.
Voyager filed for Chapter 11 bankruptcy due to liquidity issues following the default of Three Arrows Capital. While the approval does come as very good news, it is part of a multi-step process. FTX won the bid following a close race with crypto exchange Binance.
There are still many obstacles to overcome as Voyager’s creditors are yet to vote on the purchase. Earlier in the week, United States bankruptcy judge Michael Wiles advised during a court hearing that Voyager is to consider higher offers to purchase their assets should they arise. The sale will only be closed if Wiles approves Voyager’s bankruptcy payout plan, which may be heard in December. Judge Wiles’ advice brings up a clause called a “fiduciary out” which allows Voyager to cancel the deal with FTX should any other offers be presented that offer a better outcome for its creditors.
As it stands, FTX is “the only viable alternative” for Voyager. One of the losing bidders, cryptocurrency exchange CrossTower, will continue to chase its offer, which it believes is better than FTX’s bid according to reporting by Yahoo Finance.
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