Collapsed cryptocurrency brokerage Voyager Digital filed documents in U.S. courts on January 8 to challenge Binance America’s proposed debt purchase. Voyager said he approved the proposal on December 19th. The Securities and Exchange Commission, four states, the US Trustee, and Alameda Research filed objections.
In a statement, Voyager said that while objecting to Binance.US’ proposal, Binance.US offered creditors higher recovery rates and faster collections than other proposals.
Voyager’s decision to accept Binance.US’ plan was an exercise of sound business judgment, the company argued. A “business judgment rule” is a legal doctrine that explains how a court should respect the decisions of a company’s management. The documentation states:
“The Complaint ignores the practical reality of these Chapter 11 cases and fails to identify a transaction that will result in a better outcome for the debtor’s creditors. None. And these Time is of the essence in the case of Chapter 11 of .
Voyager also noted that the deal maintains “a ‘distrust’ when higher or better alternatives are proposed.”
Objections from the U.S. Trustee and the states of Vermont, New York, Texas and Hawaii were dismissed as “premature” in the documents.
A second lengthy response dated January 8th detailed the validity of the information provided in Binance.US’ plan, saying that other objections were premature and that Alameda Research’s case was frivolous. claimed.
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The SEC filed a limited objection to Binance.US’ plans on January 4, arguing that the details of the plans were insufficient. Alameda argued that the plan did not honor the loan facility’s claims, saying Voyager only entered into the loan agreement “based on Alameda FTX’s fraudulent and false representations.” signed a $500 million loan deal to cover the losses it experienced following the collapse of crypto venture capital firm Three Arrows Capital.
of @Binance offer to buy @investvoyager It doesn’t make sense to pay $1.02 billion. Unless you intend to complete the user.
Voyager customers will be paid $1 billion.
Let’s assume Binance holds 1 million of the 3.5 million Voyager users.
$1000 per user is ridiculous.
What is the angle of CZ?
— Cory Swan.com #BitcoinWORKS (@coryklippsten) January 9, 2023
Voyager filed for Chapter 11 bankruptcy on July 5. Voyager has entered into talks with 96 third parties interested in its business, according to a brief court filing filed Jan. 8.
FTX US won an auction of Voyager assets in September. The bidding process was renewed after FTX’s bankruptcy, leading to offers from CrossTower, INX and others.