Voyager Digital disclosure statement, sale hearing moved to Sept. 29

By Sarah Lizee

Olympia, Wash., Sept. 1 – Voyager Digital Ltd.’s hearing on approval of the disclosure statement for its Chapter 11 plan and approval of the sale of its equity or assets has been moved to Sept. 29, according to a notice filed with the U.S. Bankruptcy Court for the Southern District of New York.

In early August, the company received court approval of bid procedures that allow it to close a sale of its equity or assets, or to confirm a plan.

Under the plan, customers with crypto in their accounts will receive in exchange a combination of the crypto in their account, proceeds from the Three Arrows Capital (3AC) recovery, common shares in the newly reorganized company, and Voyager tokens.

The plan contemplates an opportunity for customers to elect the proportion of common equity and crypto they will receive, subject to certain maximum thresholds.

Customers with dollar deposits in their accounts will receive access to those funds after a reconciliation and fraud prevention process is completed with Metropolitan Commercial Bank.

Holders of secured tax claims and other priority claims are unimpaired and deemed to accept the plan.

Alameda loan facility claims will be canceled with no distribution to holders.

Holders of general unsecured claims will receive their pro rata share of a claims allocation pool.

Holders of section 510(b) claims will have their claims canceled with no distribution.

Intercompany claims and interests will be either reinstated or converted to equity, otherwise set off, settled, distributed, contributed, canceled or released.

Existing equity will be canceled with no distribution.

The company said it continues to evaluate all strategic alternatives to maximize value for stakeholders.

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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