- Voyager stock has seen its price plunging by 11.93% (-0.0364) today to 0.2686.
- 3AC (Three Arrows Capital) defaulted on Voyager Digital’s loan.
- Voyager filed for insolvency plus its Voyager Digital Holdings and Voyager Digital LLC subsidiaries.
Voyager Digital Company (VYGVF: OTCQX) (VOYG: TSE) has (today) declared starting a Chapter 11 process, targeting stakeholder value maximization. Voyager stock responded to the announcement with a fall, losing nearly 12%.
The process had Voyager and its Voyager Digital Holdings and Voyager Digital LLC subsidiaries file petitions for Chapter 11 recognition. The U.S Bankruptcy Court Southern District (New York) handled the petitions.
Why the Recognition Filing
Stephen Ehrlich, Voyager’s CEO, tweeted that the comprehensive reorganization targeted stakeholders’ value maximization and protected platform assets. It would also protect the customer. The executive stated that Voyager aims to empower investors through crypto trading access with speed, transparency, liquidity, and simplicity.
He said the contagion and prolonged volatility within the crypto space over the last months, plus Three Arrows Capital’s debt default to Voyager Digital, LLC needs decisive and deliberate actions. Meanwhile, the chapter eleven process offers an equitable and efficient mechanism for recovery maximizations.
Indeed, Voyager had to take such actions following the currency crypto market conditions that have seen several crypto firms destabilizing. Three Arrows Capital (3AC) is among the victims. Voyager issued 3AC a default notice for the USDC worth $350 million and 15,250 $BTC.
The Proposed Reorganization
Implementing the proposed reorganization would mean a value shift to clients and account access resumption. However, the plan relies on approval by the court and current debate with other organizations.
The plan revealed that customers with cryptos in their investment accounts would receive multiple crypto-type, newly reorganized company shares, and 3AC recovery proceeds in exchange.
Customers can decide on an amount of crypto and shares they need, though dependent on a specific maximum threshold. Meanwhile, clients with the U.S dollar will enjoy access to their money after Metropolitan Commercial Banks completes the fraud prevention process & reconciliation.
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Editorial credit: T. Schneider / shutterstock.com