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Voyager Digital Holdings, a crypto lender that has been struggling for the past month, has been given approval by the US Ba US Bankruptcy Court in the Southern District of New York to return $270 million to its customers. This comes as a major win for the crypto lender and its share price closed Thursday on a 41% surge.
The approval was issued by Judge Michael Wiles, who was overseeing Voyager’s bankruptcy proceedings after Voyager and its subsidiaries filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York last month. Judge Wiles said that Voyager had provided a “sufficient basis” in attempting to make its customers whole.
Following the ruling, Voyager customers will be allowed access to the custodial account held at the Metropolitan Commercial Bank which is believed to be holding about $350 million for the crypto lender. The funds had been frozen after the crypto lender filed for bankruptcy proceedings.
Multiple interested parties keen to bailout Voyager
On Thursday while giving its submissions in court, Voyager also disclosed that it had received offers from 88 interested parties who are keen to bail it out of its financial woes.
Voyager has rejected a number of the offers including that from Alameda and FTX in July. Alameda had offered to buy all of Voyager’s assets and outstanding loans except the defaulted loan to Three Arrows Capital. Alameda was then to liquidate the purchased assets and distribute the funds in USD through the FTX US exchange. While rejecting Alameda’s offer on July 25, Voyager said that it was “value-maximizing” for its customers.
However, the crypto lender also disclosed that it was in active discussions with about 20 potential interested parties. Some of the bids are higher than that offered by Alameda.
Voyager Digital share price
Voyager Digitial is a publicly-traded company listed on the Toronto Stock Exchange (TSX) among other stock exchanges and its share price on the OTC market (VYGVQ: US) had plummeted by over 48% since the crypto lender filed for bankruptcy on July 6.
Thursday’s share price surge pushed back the Voyager share price back to almost the same price level it was before filing for bankruptcy. The share price had sunk to a low of $0.085 but has jumped up to about $0.14.
After filing for bankruptcy last month, the Investment Industry Regulatory Organization of Canada announced it halt trading of Voyager Digital shares listed in Canada. This led to speculations that it could be delisted from the TSX.
The post Voyager Digital share price climbs 41% after approval to return $270M appeared first on Invezz.
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