Voyager Digital amends plan, files second disclosure statement

Chicago, Dec. 22 – Voyager Digital Ltd. filed its third amended Chapter 11 plan and its second amended disclosure statement with an updated buyer, according to filings with the U.S. Bankruptcy Court for the Southern District of New York.

The plan now lists BAM Trading Services Inc. (Binance US) as purchaser of the company’s assets in a transaction valued at $1.022 billion, including the value of the cryptocurrency on the debtor’s platform with an estimated value on Dec. 19 at $1.002 billion.

Notably, the plan includes a toggle feature, under which the debtors may return cryptocurrency, cash and other assets to claimholders if the sale transaction is unable to close on time.

Under the revised plan, secured tax claims and $1 million of other priority claims are unimpaired.

The voting classes include account holder claims ($1,763,800,000 of claims with a projected recovery of 50% if there is a sale transaction) and three subclasses of general unsecured claims ($6.6 million for OpCo with a 50% recovery, $15.7 million for HoldCo with a 1% recovery and $3 million with a 66% recovery for TopCo, with estimated recoveries based on a sale transaction).

Deemed to reject the plan, with impaired claims, are the Alameda loan facility claimants ($75.1 million with no recovery), section 510(b) claimants and existing equity interests.

Presumed to accept and not entitled to vote are claimants with intercompany claims and intercompany interests.

The debtors believe that “time is of the essence” and they must move through the Chapter 11 cases as quickly as possible.

Should the sale transaction not be consummated and the debtors find it necessary to conduct a Chapter 11 liquidation, the claimants might expect to receive less, especially the account holder class which would be facing a 45% recovery on their claims.

For the confirmation timeline, the debtors suggest the solicitation deadline is Jan. 20 and the voting deadline is Feb. 17.

A combined hearing to approve the disclosure statement and confirm the plan, approve solicitation procedures and voting procedure is expected to be held on Feb. 28.

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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