FTX US is selected as the highest and the winning bidder for Voyager Digital’s assets as the latter announces the completion of two weeks long auction process.
As per the press release, FTX US’s winning bid was supported by the Official Committee of Unsecured Creditors who had an active participation in the competitive auction.
After there were reports that both Binance and FTX might be the top bidders, it was FTX US’s huge bid at $1.422 billion that sealed the deal with the bankrupt investing firm.
The bid consisted of: (i) the fair market value of all Voyager cryptocurrency at a to-be-determined date in the future, which at current market prices is estimated to be $1.311 billion, plus (ii) additional consideration that is estimated as providing approximately $111 million of incremental value.
The official statement informs that Voyager’s claims against Three Arrows Capital remain with the bankruptcy estate, which enables them to distribute any available recovery on such claims to the estate’s creditors.
Also Read: Voyager Digital Issues Notice of Default to Three Arrows Capital
FTX US’s trading platform will let customers trade and store cryptocurrency after the conclusion of the Company’s chapter 11 cases. And the Voyager customers wanting access to their crypto holdings, the company said that additional information about crypto access “will be shared as it becomes available”.
Voyager stated that its chapter 11 filing was intended to ‘return maximum value to customers’ and also considered a restructuring. However, it added that the sale to FTX US was the “best alternative for Voyager stakeholders”.
The purchase agreement between the companies will be submitted to the United States Bankruptcy Court for the Southern District of New York on October 19, 2022 and the objection deadline to the transaction is October 12 at 4:00 p.m. EST.
Following the approval of the chapter 11 plan by the Bankruptcy Court, FTX US and Voyager will work together to close the transaction.
