Voyager’s Official Committee of Unsecured Creditors ( UCC) has stated that clients and creditors of the defunct firm may get their stuck monies in the coming weeks.
Remarkably, this suggests that the bankruptcy proceedings have progressed and the trustee has determined the funds available for distribution.
Details of the Update
On a Twitter thread, the Committee highlighted that details about how creditors will receive their monies will be included in the liquidation procedures. Accordingly, parties will be given 10 days to object following the filing of the liquidation procedures.
Additionally, the VoyagerUCC stated that if there are no objections within the time limit, Voyager plans to implement the proposal. However, if an objection is filed, the Court will convene a hearing to evaluate the objection before approving the proposal.
Binance Cancels Assets Purchase Deal
Interestingly, the UCC update comes shortly after Binance.US pulled out of its first arrangement to purchase $1.02 billion in assets from Voyager. At the time, Binance said it was forced to terminate the deal due to the volatile and unfriendly crypto regulatory environment in the US.
While the news was disappointing for Voyager, the bankrupt company stated that it would continue to provide value to its customers.
Could Binance Face Actions from Voyager?
Following the cancellation of the assets purchase deal, VoyagerUCC stated that it is investigating potential claims against Binance.US.
Notably, Binance could face legal action from Voyager and its creditors for breach of contract or fraudulent misrepresentation. This may be possible if Binance.US made a binding agreement and pulled out from the deal without proper justification.
Voyager Switches to its Restructuring Plan
In general, a firm that declares Chapter 11 bankruptcy may prepare a restructuring plan outlining how it wants to reorganize its operations and finances in order to become profitable again. This plan typically involves negotiating with creditors to reduce debts, selling assets, and implementing cost-cutting measures
Fortunately, Voyager’s restructuring plan includes a provision that allows the company to pursue self-liquidation following Binance.US’s decision to pull out of the deal. This allows the insolvent firm to disburse cash and crypto to consumers directly through the Voyager platform.