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Bankrupt cryptocurrency brokerage Voyager Digital filed documents in a U.S. court on Jan. 8 in response to an objection filed against the proposed purchase of the company’s debt by U.S.-based Binance. Voyager announced that it had approved the proposal on December 19. The Securities and Exchange Commission (SEC), four states, the US Trustee and Alameda Research have challenged this.
In a statement, Voyager said that objections to Binance US’s proposal “cannot provide factual or legal support” in their claims, but Binance US offers creditors higher recovery rates than other proposals. and provided rapid recovery.
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 said:
“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.
RELATED: Investors Are Looking To Sell FTX, Celsius, BlockFi And Voyager Claims
The SEC filed a limited objection to Binance US’s 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 document 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.
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