U.S. bankruptcy court approves Voyager’s chapter 11 plan, details inside
- Voyager Digital received the approval from the bankruptcy court to start liquidation procedures.
- The crypto lender’s bankruptcy estate aims to make initial asset distributions no later than 1 June, 2023.
Voyager Digital has received the green light from a U.S. bankruptcy court to wind down its operations and return its remaining assets to customers.
The approval comes after the bankrupt crypto lender filed its Chapter 11 plan in court earlier this month.
Voyager to make initial distributions soon
Voyager Digital took to Twitter on 18 May to inform its customers that bankruptcy judge Michael Wiles approved its liquidation procedures.
This paved the way for distributing the assets to customers who were stranded ever since the crypto lender filed for bankruptcy last year.
Judge Wiles acknowledged the customers’ dissatisfaction with his overseeing of Voyager’s Chapter 11 proceedings.
He clarified that liquidation was the best course of action for the crypto lender, given that it didn’t have enough assets to fully repay the customers.
According to the roadmap shared by Voyager, the Chapter 11 plan may go into effect as soon as 19 May.
Once the plan becomes effective, the Voyager Official Committee of Unsecured Creditors will be dissolved and the Plan Administrator will take control of the Wind Down Debtor.
The bankruptcy estate is currently working out the repayment details and plans to make the initial distributions before 1 June. As for the repayment, the bankrupt crypto lender will only be returning 35% of the customers’ claim amount.
The remaining will be held back until claims disputes with third parties are resolved.
As per the liquidation procedures filed earlier this month, Voyager’s bankruptcy estate currently has a little over $1.3 billion in assets, which represent 75% of the amount owed to customers.
Of this, $445 million will be held back for preference claims related to FTX and Alameda Research. And $135 million will be held back for wind down costs and the form’s litigation reserve.
Another $49 million will be retained for administrative claims, leaving $629 million for the crypto lender’s customers.