•On Tuesday, Voyager Digital’s legal team said they were “shocked, disgruntled, dismayed” that they have to reopen the bidding process for their distressed assets following FTX’s bankruptcy.
• The Voyager Official Committee of Unsecured Creditors announced last week that they had reopened the bidding process.
• If not for the FTX Group’s bankruptcy, Voyager Digital’s creditors would have had until November 29 to approve or object to the restructuring plan.
• Now the bankrupt asset manager is rumored to be considering offers from one of the losing bidders.
Voyager Legal Team Scrambles
On Tuesday, Voyager Digital’s legal team said they were “shocked, disgruntled, dismayed” that they have to reopen the bidding process for their distressed assets following FTX’s bankruptcy. The Voyager Official Committee of Unsecured Creditors announced last week that they had reopened the bidding process. According to a statement from the committee, “If not for the FTX Group’s bankruptcy, Voyager Digital’s creditors would have had until November 29 to approve or object to the restructuring plan.”
Now the bankrupt asset manager is rumored to be considering offers from one of the losing bidders. So what went wrong?
Voyager Digital was in the process of selling its distressed assets to FTX Group when Voyager accepted a $1.4 billion bid from FTX, but FTX filed for bankruptcy last week, derailing the deal. Now, Voyager is scrambling to find a new buyer and is reportedly considering offers from some of the losing bidders in the original sale process.
This turn of events is a major setback for Voyager, which was hoping to use the proceeds from the sale to repay creditors and avoid bankruptcy itself. The company has been struggling since last year when it filed for bankruptcy in July, with more than 100,000 creditors to whom it owes between $1 and $10 billion. In June, the crypto asset manager revealed that it had a $661 million exposure to now-defunct hedge fund Three Arrows Capital, which itself filed for bankruptcy on July 2.
Voyager Bidding Reopened
The reopening of the bidding process is also a blow to FTX, which was hoping to use Voyager’s assets to boost its own bottom line. FTX had already won court approval for its bankruptcy plan, which included the acquisition of Voyager’s assets. But with that deal now off the table, FTX will have to look elsewhere to raise the cash it needs to exit bankruptcy.
It’s been a rollercoaster couple of weeks for both Voyager Digital and FTX Group. After FTX filed for bankruptcy, scuttling its planned acquisition of Voyager’s assets, Voyager is now back in the market for a buyer. This time around, though, things could be different — both companies are in a weaker position than they were before, and it’s unclear who will come out on top in this whole mess.
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