Voyager's Customers Might Gain Access To 72% Of Their Funds If FTX US Bid Is Approved
Months after crypto lending platform, Voyager, filed for chapter 11 bankruptcy, new court documents reveal that its customers might be able to recover 72% of their investments if crypto exchange, FTX, successfully buys out the company.
FTX Deal Remains The Most Favourable For Voyager's Customers
Users of the bankrupt crypto lending platform, Voyager, might finally gain access to some of their funds if FTX successfully buys the company. Court papers show that they will recover 72% of the value of crypto they invested in the lending platform if the deal goes through.
This deal still requires approval from a Judge, also, in the case of a higher bid, the deal could be turned down. A bidding war to buy out the company ensued some months back, FTX is in the lead which means the 72% payment is the most realizable at the moment. FTX bid is valued at approximately $1.4 billion.
In July, after a round of problems attributed to the acrid state of the crypto market, the crypto lending platform filed for Chapter 11 bankruptcy in New York. The company reportedly had around 100,000 creditors and a sum of $1 billion to $10 billion in assets at the time.
Voyager debtors in a letter to the court filed on Oct. 18, noted that the FTX deal would allow for a 72% recovery of their assets. They noted that the deal is the best option for stakeholders and it will help with the most acceptable resolution.
Bankruptcy Judge Has To Give Approval
During the most recent hearing, Bankruptcy Judge Michael E. Wiles affirmed that the company could scrap FTX's deal if a superior offer comes up which will allow the customers access to a larger amount of their investments.
The judge will have the final say on the buyout plan as shown in the letter, it may be considered for approval in December, and it comes before the FTX deal or any other can be approved. It also shows that the firm requested for the Judge's permission to send the payment plan to customers for them to vote and make a decision. Even if they vote in favour, the judge still has to approve.
mundissima / Shutterstock.com
