Bankrupt lender Voyager Digital is completing liquidation procedures after crypto exchange Binance.US withdrew from a $1.3 billion deal to buy its assets.
Bankrupt Credit Institution Voyager Digital Plans to Pay Its Creditors
"Voyager is also internally finalizing whatever is necessary to make distributions to creditors," the creditors committee said on Twitter. "We expect the first deployments to begin in the next few weeks."
The court-approved restructuring plan included a pass that allowed Voyager to liquidate if Binance.US decided to exit the deal.
The crypto exchange had said it was backing out of the plan due to the hostile and uncertain regulatory climate in the United States.
The deal between Voyager and Binance.US has faced scrutiny from the government. The U.S. Securities and Exchange Commission stated in a court hearing that staff believe Binance.US operates an unregistered securities exchange in the country, although the commission has not taken an official position.
Voyager must first file its liquidation procedures with the US Bankruptcy Court for the Southern District of New York, and the parties will have 10 days to appeal the plan.
When the company filed for bankruptcy protection last summer, it said it had more than 100,000 creditors.
"If no objections are raised, Voyager then plans to go into 'force' with the plan," the committee said.
If there is an objection, the Court will hold a hearing to consider the objection before the plan goes into effect."
Of the 6% of creditors who voted for the proposed Voyager restructuring plan, 97% voted in favor. Customers will see a 73% recovery of assets under the Binance.US recommendation.
*Not investment advice.