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Voyager Digital File for Chapter 11, Finding How to ‘Maximize Value for All Stakeholders’

U.S.-based crypto platform Voyager Digital says it has voluntarily filed for Chapter 11 relief under the U.S. Bankruptcy Code as it seeks to implement its reorganization plan and “maximize value for all stakeholders.”

Chapter 11 usually deals with reorganization, which usually involves a corporation or partnership. Chapter 11 debtors often recommend a reorganization plan to keep their business running and pay creditors over time.

Under Voyager’s reorganization plan, customers with cryptocurrencies in their account(s) will receive in exchange for a combination of cryptocurrencies in their account(s), proceeds from the revoked Three Arrows Capital (3AC), common shares in the newly reorganized company, and Cruise Ship Tokens. Meanwhile, customers with USD deposits in their account(s) will receive access to those funds upon completion of the reconciliation and fraud prevention process with Metropolitan Commercial Bank, they said more.

The company claims it has more than $110 million in cash and cryptocurrencies, in addition to over $350 million in cash held in its For Customer Benefit account at Metropolitan Commercial Bank. Voyager also says it has about $1.3 billion in crypto on its platform, plus claims against 3AC over $650 million. As reported, Voyager has issued a notice of default to 3AC for failing to make the required payments on a previously disclosed 15,250 BTC and 350 million USDC loan.

While I strongly believe in this future, the prolonged volatility and contagion in the crypto market over the past few months and 3AC’s default on a loan from a subsidiary of the Company, Voyager Digital, LLC, requires us to take deliberate and decisive action Now. The chapter 11 process provides an effective and fair mechanism for maximizing recovery,” said Stephen Ehrlich, Director Voyager’s chief executive officer, quoted in the announcement.

As reported, last week, Voyager Digital, said it was “temporarily” suspending trading, deposits, withdrawals and loyalty rewards.

This decision gives us more time to continue exploring strategic alternatives with different interested parties while preserving the value of the Voyager platform we built together. I will provide additional information at the appropriate time,” Ehrlich was quoted at the time.

As reported, the firm’s exposure to troubled crypto fund Three Arrows Capital includes 15,250 BTC ($307) and $350 million USDC, while it also entered into a line of credit line agreement worth every row. million dollars with Alameda Ventures, a quantitative trading company and the parent company of the FTX exchange.