• Voyager’s bankruptcy plan was approved by the United States Bankruptcy Court on May 17.
• The third bankruptcy plan came about after Binance.US backed out of plans to buy $1 billion worth of Voyager assets.
• Creditors will receive a maximum return of 35.7% from their claims in the liquidation process.
Voyager’s Bankruptcy Plan Approved
The United States Bankruptcy Court for the Southern District of New York approved Voyager’s third bankruptcy plan on May 17th, according to a Reuters report. Judge Michael Wiles’ order approving the procedure was published by the court a day earlier.
Binance US Backed Out Of Plans To Buy Assets
In April 25, Binance US backed out of plans to buy $1 billion worth of Voyager assets previously agreed upon between FTX and Voyager. This caused FTX to collapse and sue Voyager for $445.8 million in January due to loan repayments it made in 2022 that are liable to clawback because they occurred immediately prior to FTX’s bankruptcy.
Creditors Will Receive A Maximum Return Of 35.7%
The new bankruptcy plan will allow creditors a maximum return of 35.7% from their claims in the liquidation process, which is much less than what they would have received under the original agreement with FTX (72%).
Voyager Heading Into Liquidation Process
Now that the third bankruptcy plan has been approved, Voyager will be heading into its liquidation process where all remaining assets will be distributed amongst creditors as repayment for debts owed by them company.
Questions Remain About Executives Payouts
Questions remain regarding executives payouts despite having failed at almost every task assigned to them during this entire process which has now lasted over 2 years since filing for Chapter 11 protection in 2019.. Many are wondering why lawyers and executives are not forfeiting their pay if they didn’t do their jobs properly given that other industries require employees meet certain standards even when working within bankruptcies?