New Chapter 11 Filing – Voyager Digital

New Chapter 11 Filing – Voyager Digital

On July 5, 2022, New York-based cryptocurrency exchange, Voyager Digital Holdings, Inc. along with its publicly traded Canadian affiliate, Voyager Digital Ltd., filed a petition for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the Southern District of New York (Case No. 22-10943). The company reports $1 to $10 billion in both assets and liabilities.  The Debtors will pursue reorganization both through Chapter 11 in the U.S. and under the Companies’ Creditors Arrangement Act in Canada.

On July 5, 2022, the Toronto stock exchange halted trading of Voyager Digital Ltd.  The Debtors say their filings were driven by the recent drops in cryptocurrency prices and a significant payment default from borrower Three Arrow Capital, who filed its own Chapter 15 petition on July 1.  The Debtors are pursuing a plan sponsor to effectuate a stand-alone restructuring, which, as contemplated, would entitle account holders to certain liquid assets, recoveries from prepetition borrowers, and nearly all reorganized common equity.

Cole Schotz does not represent the Debtors in these cases.  We are posting this for informational purposes only.  If you have received a notice and have any questions, you should contact Debtors’ counsel.

Cole Schotz’s nationally renowned Bankruptcy & Corporate Restructuring group practices in Delaware, Maryland, New Jersey, New York, and Texas.

Source link

Amer Mustafa

Leave a Reply

Your email address will not be published. Required fields are marked *