In the latest Voyager case hearing, bankrupt crypto lender's customers receive good news.
Voyager, a US-based bankrupt cryptocurrency lending platform established in 2018 by Stephen Ehrlich, had another hearing in the United States Bankruptcy Court.
In the recent case hearing, United States Bankruptcy Judge Michael Wiles noted that under a preliminary agreement with FTX US, users will be able to recover 72% of their account value.
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe - We publish new crypto explainer videos every week!
How to Pick the Right NFTs? (Animated DOs & DON'Ts)
According to the court hearing documents issued by the United States Bankruptcy Court for the Southern District of New York, the tentative sale and bankruptcy payout plan will be finalized only when the court receives approval from Voyager creditors.
The judge also highlighted that Voyager should consider issuing a “fiduciary out” clause. After agreeing with the clause, Voyager will be able to cancel the deal with FTX if it receives a better buyout offer. The clause is widely used in various bankruptcy cases, which allows companies to receive the best offer.
Voyager hopes to collect creditor votes by November 29th. Voyager expects to finalize the buyout during the confirmation hearing in December.
It is worth noting that in the same hearing, the judge denied the objection made by the Office of the Texas Attorney General. The Attorney General claimed that Voyager Digital and FTX are not complying with the Texas laws, and “the proposed sale or order approving the sale attempts to limit the Debtors’ liability for unlawful […] conduct for which state-regulatory fines and penalties may apply.”
On September 26th, FTX won the bid for Voyager Digital assets by offering $1.4 billion. After the auction, Voyager highlighted that it expects its customers to move to FTX platform.
It is worth remembering that Voyager filed for Chapter 11 bankruptcy on July 4th due to liquidity issues.
