FTX US was able to secure a two-week auction for Voyager in a deal that involved court approval of a creditors’ payment plan, lawyers said. However, if Voyager is able to get a better deal that will pay its customers more, they may choose to cancel the current deal. On Wednesday, Judge Michael E. Wiles of the US Bankruptcy Court approved an agreement.
Wells also urged Voyager to “exit credit,” a standard bankruptcy clause. The bank’s protection allows companies to accept higher offers until a sale is final. According to bankruptcy attorney Christine Okike, FTX is the only viable alternative for the company at this time. Still, they have agreed to change how the fiduciary out is worded to ensure that a better offer can be considered. According to Voyager, Wiles has been requested to provide permission to send the payout plan to creditors and customers for a vote. This will allow them to have a say in how the company’s assets are distributed. If the creditors vote in favor, Wiles will also be asked to approve the sale.
The sale of Voyager to FTX has been valued at approximately $1.4 billion, of which $51 million is in cash. As part of the sale, FTX will be moving customers onto its platform. As per the terms of the payout plan, customers who have digital currencies on Voyager’s platform will be paid in that form once FTX takes over, provided FTX supports that type of currency, as per information provided by lawyers to Wiles. The FTX’s purchase of Voyager comes after several previous attempts by the FTX to bail out or acquire the company, according to Bloomberg.
As of March 31, Voyager, a New York-based digital asset platform, had approximately 3.5 million users and 1.19 million funded accounts. Voyager filed for bankruptcy protection in July. Alameda Research did so after an unsuccessful attempt to bail it out with a revolving credit facility. Alameda Research is a trading house affiliated with FTX.
Soon after that attempt, FTX and Alameda made a joint bid for Voyager. However, Voyager felt that the offer was too low and declined the attempt. In September, Alameda said that it would return approximately $200 million worth of Bitcoin and Ether that it had borrowed from Voyager by the end of the month. Bankman-Fried has acquired several crypto firms in distress, through which he has acquired customers and valuable technologies at a cheaper price. Bankman-Fried is estimated to own a majority stake in FTX, FTX US, and Alameda. These holdings give him considerable control over the direction of these companies.
