Voyager and Binance.US deal given initial nod amid national security probe
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Bankrupt crypto lender Voyager Digital received initial court approval for its proposal to sell its assets to Binance.US for $1.02 billion.
The approval comes amid a national security probe concerning Binance.US that Voyager is seeking to speed up.
On Jan. 10, Judge Michael Wiles in the United States Bankruptcy Court for the Southern District of New York allowed Voyager to enter into the asset purchase agreement and seek creditor approval, but the sale will not become final until a future court hearing, according to a Jan. 11 Reuters
The Voyager Official Committee of Unsecured Creditors — a body representing creditors with no security interests in Voyager — supported the transaction in its current form noting the deal would result in greater recoveries for creditors than if Voyager liquidated its holdings itself — which is what would occur if CFIUS blocks the transaction.
6/ This change, along with other agreed-upon terms reflected in the Amended APA (link below), has made the UCC comfortable with the transaction and garnered the UCC’s support.
— Voyager Official Committee of Unsecured Creditors (@VoyagerUCC) January 10, 2023
Previously, objections to the acquisition proposal from Alameda Research, the Securities and Exchange Commission (SEC), four U.S. states and the U.S. trustee were rebutted by the bankrupt lender on Jan. 8.
It claimed the transaction is in the best interest of its creditors and the objections “fail to put forward any factual or legal support” for its arguments.
Voyager announced on Dec. 19 it had agreed to Binance.US’s bid to acquire its assets in the $1.022 billion deal after the previous $1.4 billion deal with FTX.US fell through following the bankruptcy of the crypto exchange.
