Bankrupt cryptocurrency brokerage Voyager Digital filed documents in a United States court on Jan. 8 in response to objections raised to Binance US's proposal to buy its debt. Voyager announced that it had approved the offer on December 19. The Securities and Exchange Commission (SEC), four states, the US Trustee and Alameda Research filed objections.
Traveler fixed in a document that the objections to the Binance US offer "do not present any factual or legal support" in its arguments, while Binance US offered creditors higher recovery rates than other proposals and a quick recovery.
Voyager's decision to agree to the Binance.US plan was an exercise of good business judgment, he argued. The “commercial judgment rule” is a legal doctrine that describes how courts should respect the decisions of a company's executives. The document said:
“The Objections ignore the practical realities of these chapter 11 cases and fail to identify any transaction that would provide a better outcome for the Debtors' creditors. There are none. And time is of the essence in these Chapter 11 cases.”
Voyager also noted that the deal retained its "'fiduciary exit' should an alternative higher or better transaction be proposed."
Objections from the US Receiver and the states of Vermont, New York, Texas and Hawaii were dismissed in the filing as “premature.”
A second, longer answer, dated January 8, detailed the alleged adequacy of the information provided in the Binance.US plan and argued in detail that further objections are premature and, in the case of Alameda Research, frivolous.
Related: Investors look to sell FTX, Celsius, BlockFi, Voyager claims
The SEC had filed a limited objection to Binance US's plan on January 4. claiming that the plan was not detailed enough. Alameda claimed that the plan did not honor its loan facility claims, which Voyager said only signed the loan agreement "based on AlamedaFTX's fraudulent and false representations." Voyager signed a $500 million loan agreement with Alameda to help it cover losses it experienced after the failure of crypto venture capital firm Three Arrows Capital.
He @binance buy offer @investtraveller for $1.02B it's pointless, unless they're not planning on making users complete.
$1 billion is owed to Voyager customers.
Let's GENEROUSLY assume that Binance takes 1 million of Voyager's 3.5 million users.
$1000 per user is ridiculous.
What is the angle of CZ?
— Cory Swan.com #Bitcoin WORKS (@coryklippsten) January 9, 2023
Traveler filed for Chapter 11 bankruptcy July 5th. According to the shorter court filing on January 8, Voyager began discussions with 96 third parties interested in its business.
FTX USA won the Voyager asset auction in September. The bidding process was renewed after the bankruptcy of FTX, leading to offers from CrossTower, INX and others.
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