Voyager Digital Files Chapter 11, Seeking to “Maximize Value for All Stakeholders”
Voyager Digital, a crypto platform located in the United States said that it has filed voluntary petitions for protection under Chapter 11 of the United States Bankruptcy Code to execute its reorganisation plan and “maximise value for all stakeholders.”
Chapter 11 enables reorganisation, which often involves a company or a partnership. Typically a chapter 11 debtor offers a plan of reorganisation to preserve its company and make payments to creditors over time.
In accordance with Voyager’s reorganisation plan, clients having cryptocurrency in their account(s) will receive a mix of the cryptocurrency in their account(s), funds from the Three Arrows Capital (3AC) recovery, and common shares in the newly restructured firm, and Voyager tokens. In the meantime, consumers having USD deposits in their account(s) will have access to this money upon the completion of a reconciliation and fraud prevention procedure with Metropolitan Commercial Bank, they noted.
The corporation claims to have more than USD 110 million in cash and cryptocurrency on hand, in addition to USD 350 million stored in the For Benefit of Customers account at Metropolitan Commercial Bank. Voyager also said that it had about USD 1.3 billion in crypto assets on its platform, in addition to USD 650 million in claims against 3AC. As reported, Voyager filed a notice of default to 3AC for failing to make payments on a previously disclosed loan of BTC 15,250 and USDC 350m.