(Kitco News) -
Bankrupt crypto lender Voyager Digital announced this morning that Binance.US offered them “the highest and best bid for its assets” following a review of all their options.
Voyager wrote that the Binance.US bid is valued at approximately $1.022 billion and “sets a clear path forward for Voyager customer funds to be unlocked as soon as possible.” The bid represents the current fair market value of Voyager's cryptocurrency portfolio at $1.002 billion “plus additional consideration equal to $20 million of incremental value.”
Voyager said their claims against Three Arrows Capital “remain with the bankruptcy estate, and any future recovery on these and other non-released claims will be distributed to the estate's creditors.”
Voyager said that Binance.US will make a $10 million “good faith deposit” and will also reimburse Voyager for certain expenses up to a maximum of $15 million.
The company will now seek the approval of the bankruptcy court for the deal at a hearing on January 5, 2023, and the sale will also be subject to a creditor vote and other customary closing conditions. If the deal is not closed by April 18, 2023, with the possibility of a one-month extension, “the agreement allows Voyager to immediately move to return value to customers.”
Voyager filed for Chapter 11 bankruptcy protection on July 5, 2022 after a liquidity crunch caused in part by Three Arrows Capital defaulting on a $650 million loan amidst the contagion of the collapse of Luna/Terra coins earlier in the spring. Voyager had previously negotiated a sale of its assets to FTX.US for $1.4 billion on Sep. 26, but that deal fell through when FTX filed for its own bankruptcy on Nov. 11.
