A bankruptcy court in New York’s Southern District has authorized Voyager’s plan to sell its assets to FTX, paving the way for a creditor vote.
Judge Michael Wiles approved the asset acquisition agreement Friday, bringing the $1.4 billion transfer of Voyager’s assets to FTX one step closer to completion.
After suspending withdrawals, the bankrupt lender filed for Chapter 11 bankruptcy protection in July. Customers and creditors have been waiting for their money ever since.
During the auction, Voyager accepted an offer from FTX that would allow Voyager users to access what assets remained on the FTX platform using freshly formed FTX accounts.
Counsel told the court on Wednesday that they expect creditors to reclaim 72% of their assets under the arrangement.
The ultimate purchasing price of Voyager’s cryptocurrency is unknown. The idea will employ a 20-day historical average for the pricing, with a timeframe determined at a later date. Customers’ payouts will be determined by this price process. However, based on their claim, they will be paid in a combination of in-kind crypto, USDC, and cash.
Only those who want to use the FTX platform can get their compensation in cryptocurrency. Those who do not relocate will receive money from the Voyager estate.
However, the VGX token is not supported by the FTX platform. FTX has proposed a floor price of $10 million to buy the entire VGX. In a blog post, the company stated that it is seeking to find a higher and better solution but will take the $10 million offer if it is unsuccessful.
The agreement is one step closer to completion now that it has been approved by the court. Following that is a creditor vote, and Voyager invited consumers to vote in favor of the proposal by the November 29 deadline in its article.
“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,” according to the company.
Creditors will be offered instructions on how to vote in a solicitation packet delivered by claims agency Stretto. That bundle may also contain a letter from the creditor committee advising consumers of the agreement’s releases shielding executives from future legal action.
Following the voting, the bankruptcy court might confirm the proposal in mid-December. Following that would be the closure procedure and the movement of clients to the FTX platform to collect their assets.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Harold
CoinCu News
