Voyager Hopes to Start Distributions to Creditors In the “Next Few Weeks”
On Thursday, May 4th, the Voyager Official Committee of Unsecured Creditors announced on Twitter it is working with the bankrupt company to finalize the liquidation procedures. The UCC hopes that the firm will start making initial distributions to creditors “in the next few weeks”. The update comes less than two weeks after Binance.US gave up on its $1 billion acquisition of Voyager.
Voyager Working With UCC to Finalize Liquidation Procedures
This Thursday, the Voyager Official Committee of Unsecured Creditors stated it is working closely with the bankrupt cryptocurrency lender to finalize the liquidation procedures as quickly as possible. The UCC is hoping it will be able to start making distributions to creditors “in the next few weeks”.
1/ Voyager and the UCC are in the process of finalizing Liquidation Procedures. As a reminder, the Liquidation Procedures must be filed before the Plan can go effective.
— Voyager Official Committee of Unsecured Creditors (@VoyagerUCC) May 4, 2023
The Committee, however, also warned that after the procedures are filled, there will be a 10-day objection period. If objections to the plan emerge, the matter will go to a hearing where the court will weigh the arguments. If there are none, Voyager is planning to move quickly with its plan.
The post comes less than two weeks after Binance.US decided to pull out of its agreement to acquire Voyager Digital. At the time, the bankrupt company stated it will continue providing updates as quickly as possible. A later update on Thursday also stated that the procedures will likely be filed as soon as Friday, May 5th.
Voyager’s Rocky Bankruptcy
Ever since it filed for bankruptcy in the summer of 2022 in the wake of the LUNA collapse, Voyager Digital has been struggling with its liquidation. Its fortunes appeared to have turned last August after it was reported that multiple companies were interested in acquiring its assets.
About a month later, it was revealed that Coinbase and FTX were the most serious bidders before the latter company ultimately entered into an agreement to acquire Voyager’s assets. While the court approved the deal in October, it ultimately failed as Sam Bankman-Fried’s company itself filed for bankruptcy in November after widespread illicit activity within the firm was uncovered.
Even before getting terminated, Binance.US’s $1 billion bid was plagued by setbacks. From the very beginning, US watchdogs were opposed often citing insufficient clarity surrounding the agreement. The pressure ultimately caused Binance’s American subsidiary to give up on the acquisition citing regulatory uncertainty.