Voyager Digital Ltd (Voyager), the cryptocurrency platform owed more than $650 million by troubled crypto hedge fund Three Arrows Capital (3AC) has commenced a voluntary Chapter 11 process to maximise value for all stakeholders.
As part of this process, the company and its main operating subsidiaries filed voluntary petitions for reorganisation under Chapter 11 in the US Bankruptcy Court of the Southern District of New York. The Company intends to seek recognition of the Chapter 11 case of Voyager in the Ontario Superior Court of Justice (Commercial List) pursuant to the Companies’ Creditors Arrangement Act.
Under the proposed Plan, which is subject to change given ongoing discussions with other parties, and requires Court approval, customers with crypto in their account(s) will receive in exchange a combination of the crypto in their account(s), proceeds from the 3AC recovery, common shares in the newly reorganised Company, and Voyager tokens. The plan contemplates an opportunity for customers to elect the proportion of common equity and crypto they will receive, subject to certain maximum thresholds.
The company has over $110 million of cash and owned crypto assets on hand, which will provide liquidity to support day-to-day operations during the Chapter 11 process, in addition to more than $350 million of cash held in the For Benefit of Customers (FBO) account at Metropolitan Commercial Bank. Voyager also has approximately $1.3 billion of crypto assets on its platform, plus the claims against 3AC.
