Bankruptcy crypto broker Voyager Digital filed documents in a United States court on January 8 in response to objections filed to Binance’s US proposal to buy debt. Voyager announced that it has approved the offer on December 19. The Securities and Exchange Commission (SEC), four countries, the US Trustee and Alameda Research filed objections to.
Voyager stated in one of the documents that the objections to the Binance US offer “failed to provide factual or legal support” in the argument, while Binance US offered a higher recovery rate than other proposals and a quick recovery.
Voyager’s decision to accept the Binance.US plan was an exercise in good business judgment, he said. The “business court rule” is a legal doctrine that describes how courts should respect the decisions of corporate executives. The document states:
“The argument ignores the practical reality of these 11 cases and fails to identify any transaction that provides a better outcome for creditors. None. And time is of the essence in these 11 cases.
Voyager also stated that the agreement kept the “‘fiduciary out’ in the event of a higher or better alternative transaction.”
Objections from the US Trustee and the states of Vermont, New York, Texas and Hawaii were rejected in the document as “premature.”
Another longer response, dated Jan. 8, detailed the sufficiency of the information provided in the Binance.US plan and argued in detail that other objections were premature and, in the case of Alameda Research, frivolous.
Related: Investors looking to sell FTX, Celsius, BlockFi, Voyager claims
The SEC has filed a limited objection to Binance’s US plan on January 4, claiming the plan is not detailed enough. Alameda said the plan did not honor the demands of the loan facility, which Voyager said only entered into the loan agreement “based on AlamedaFTX’s false and misleading representations.” Voyager signed a $500 million loan agreement with Alameda to help cover the losses it suffered after the failure of crypto venture capital firm Three Arrows Capital.
At @binance offer to buy @investvoyager for $ 1.02B makes no sense, unless they are not planning for the whole user.
$1B in debt to Voyager customers.
Let’s be GENEROUSLY if Binance saves 1M of Voyager’s 3.5M users.
$1000 per user is ridiculous.
What is the CZ angle?
— Cory Swan.com #Bitcoin WORKS (@coryklippsten) January 9, 2023
Voyager filed for Chapter 11 bankruptcy on July 5. According to a lower court filing on January 8, Voyager entered into discussions with 96 third parties interested in its business.
FTX US won the auction for Voyager assets in September. The bidding process was renewed after the bankruptcy of FTX, which led to bids from CrossTower, INX and others.