Delays in the Voyager acquisition deal could quickly cost the company and its creditors millions of dollars.
According to recent court documents, if the legal challenges posed by the US authorities aren't resolved by April 13th, Voyager and its creditors could lose approximately $100 million.
Therefore, it is not surprising that the bankrupt crypto lender is putting all of its efforts to seal the deal, fearing that ongoing disagreements may force the crypto exchange Binance.US to back out of the agreement.
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The agreement, signed in December and approved by bankruptcy judge Michael Wiles in March, permits Binance.US to withdraw if the deal remains uncompleted after four months.
Voyager's creditors filed a document emphasizing the necessity of finalizing the plan by April 13th in order to preserve substantial creditor value.
Consummation of the plan by April 13 is necessary to preserve massive creditor value. The evidence is uncontroverted that, if the deal is not completed, Voyager’s creditors will lose roughly $100 million in value.
Voyager submitted an additional filing to the US Court of Appeals for the Second Circuit, emphasizing that delays would incur a monthly cost of $10 million and hinder over 1 million customers from accessing their funds.
Lawyers for the US government have raised concerns that the terms of the deal could effectively shield the company from breaches of tax or securities law. District Judge Jennifer Rearden ruled to pause the acquisition until the issue is addressed.
In March, the Securities and Exchange Commission argued that assets involved in the transfer, including Voyager's VGX token, could be considered unregistered securities. However, bankruptcy judge Michael Wiles dismissed the argument.
It is worth noting that Binance.US is not the only crypto exchange trying to purchase Voyager Digital. At the end of September 2022, weeks before it filed for bankruptcy, FTX US won the bid for Voyager and planned to buy its assets for $1.422 billion.
