Bankrupt cryptocurrency lending company Voyager Digital Ltd. VYGVQ has obtained the approval of the creditors for its $1.42 billion sale to exchange cryptocurrencies FTXafter securing a first judicial approval.
US Bankruptcy Judge Michael Willes said that as long as Voyager was open to bigger and better offers than the FTX offer, it would accept Voyager’s purchase agreement and debtor solicitation materials.
According to Wiles, the deal will not be official until it receives creditor approval under the Chapter 11 bankruptcy plan.
“If the plan falls apart, there is no part of this agreement that will survive,” Wiles said. according to to Reuters.
See also: FTX pays $51 million for Voyager Digital users, IP and the business itself
Sam Bankman Fried‘s FTX had submitted the winning bid after a two-week auction in September.
If creditors accept the transaction, the majority of Voyager customers would switch to accounts on FTX’s platform.
While the value of those cryptocurrency assets may have fallen since the bankruptcy filing, customers would still get back 72% of what they previously had with Voyager.
Voyager Account holders are primary creditors
According to court filings, Voyager account holders are the primary creditors in the bankruptcy, with claims totaling $1.76 billion.
Voyager plans to seek final approval of the sale during a confirmation hearing in December, and votes from creditors are required by November 29.
Voyager filed for bankruptcy protection in July and is still doing so, according to court filings payment of Capital with three arrowswhich is also insolvent, which may result in additional revenue for Voyager’s customers.
At the court hearing, a lawyer for CrossTower said the digital currency trading company “remains fully invested” in a deal to purchase Voyager Digital’s assets.
Disclosure: Jason Raznick, CEO of Benzinga, is a member of the unsecured creditors…
