Judge Approves FTX Bid to Buy Voyager and Return 70%+ of Assets to Creditors
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Judge Approves FTX Bid to Buy Voyager and Return 70%+ of Assets to Creditors

A bankruptcy court just approved the FTX-Voyager purchase agreement.
Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.

On Friday, October 22nd, Voyager Digital announced that the bankruptcy court approved their purchase agreement with FTX US. This isn’t the end of the road as the bankrupt crypto lender’s creditors are yet to cast their votes by November 29th.

Court Approves the Purchase Agreement Between FTX and Voyager

This Friday, Voyager announced that another major step in their ongoing bankruptcy proceedings has been taken. According to a press release Michael Wiles, a bankruptcy judge approved their agreement with FTX US. A recent document indicates that, if the purchase proceeds, Voyager’s creditors can expect to recover around 72% of their assets.

Currently, FTX is to pay approximately $1.422 billion with around $1.3 billion going towards acquiring the bankrupt crypto lender’s assets. The announcement explains that the creditors can expect to be reimbursed with crypto and fiat. The caveat is that only those that accept to move their accounts to FTX can receive cryptocurrency as part of the deal.

The purchase agreement is an ongoing, multi-step process. While FTX won the bid after a close race with Binance, there are still some obstacles to overcome. Voyager’s creditors are yet to vote on the purchase, and a recent complaint filed by Texas authorities might complicate the deal.

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What is Next in the Case of Voyager’s Bankruptcy?

Voyager’s announcement placed special attention on the upcoming creditor vote. The deadline is set for 4:00 PM, November 29th, and the bankrupt crypto lender is very keen to get the creditors to accept the agreement.

Voyager and its affiliated debtors believe that the sale to FTX US is in the best interest of all stakeholders and, ultimately, is the best possible—and only actionable–transaction available. As such, Voyager and its affiliated debtors urge you to properly and timely submit your ballot, in advance of the November 29th deadline, with a vote to ACCEPT the plan.

Creditors will be repaid in either USD or some of the numerous available cryptocurrencies if they move their accounts to FTX US, or only in dollars if they choose not to. The exact amount they are to receive will be based on a 20-day average measured over a period that is yet to be determined.

Currently, FTX does not support Voyagers VGX tokens, but there are plans to accommodate this currency. FTX is allegedly offering a total of $10 million for all VGX currently held by Voyager, the bankrupt company is in the process of negotiating a better deal. Today’s release makes it clear that if no such deal is reached, they will accept the 10 million.

The press release also warns creditors that it is unknown whether VGX will lose all of its value after the purchase is complete if it will retain, or increase in value—as it did after it was revealed that numerous companies were lining up to bid on the bankrupt company’s assets. If the purchase gets completed it will be the end of a months-long bankruptcy saga that started this July in the aftermath of the Terra LUNA collapse.

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Do you think VGX price will go to zero after the sale is complete? Let us know in the comments below.