Voyager Digital gets court approval of bid procedures for assets

By Sarah Lizee

Olympia, Wash., Aug. 5 – Voyager Digital Ltd. secured court approval of bid procedures for its assets and approval to select one or more stalking horse bidders, according to an order filed with the U.S. Bankruptcy Court for the Southern District of New York.

As previously reported, the company said the bid procedures will allow the debtors to close a sale of the debtors’ equity or assets, or to confirm a Chapter 11 plan.

Under the bid procedures, bids are due by noon ET on Aug. 26, an auction will be held on Aug. 29, and a sale hearing will take place on Sept. 8.

As reported, the company’s competitors and largest stakeholders, FTX Trading Ltd. and Alameda Ventures Ltd., made a buyout offer for the company.

The purchase price would be equal to the fair market value of the digital assets as of the second trading day prior to the closing date. With respect to customer information and exclusive referral rights for their accounts, the buyers would pay $15 million.

Alameda agreed to write off its own $75 million loan claim as part of the proposed transaction. This claim would otherwise share in supplemental recoveries. Writing off the loan will permit customers and other unsecured creditors to receive 100% of any incremental recoveries from the enforcement of the Three Arrows Capital claim and any related litigation claims.

However, Voyager said the offer was made in contravention of the proposed bid procedures and was designed to generate publicity for Alameda and FTX rather than value for Voyager’s customers.

“Hopefully customers understand that public dissemination of proposals that subvert a coordinated, confidential, competitive bidding process can have the effect of chilling bidding,” the company said in court documents.

Voyager called the proposal “nothing more than a liquidation of cryptocurrency on a basis that advantages AlamedaFTX,” and a “low-ball bid dressed up as a white knight rescue.”

Voyager Digital is a cryptocurrency broker based in New York. The company filed bankruptcy on July 5 under Chapter 11 case number 22-10945.

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