Voyager tells court Binance acquisition plan is ‘sound business judgment,’ urgently needed

Crypto investor Voyager Digital filed documents in a US court on January 8 in response to objections raised to Binance US’s request to buy its debt. Voyager announced that the offer was approved on December 19. The Securities and Exchange Commission (SEC), four states, the US Trustee and Alameda Research filed objections.

Voyager said in one of the documents that the opposition to the Binance US offer “failed to provide any factual or legal support” to their arguments, while Binance US offered creditors the higher recovery rates than other applications and faster recovery.

Voyager’s decision to accept Binance.US’s plan was an exercise of good business judgment, it argued. “Court law” is a legal doctrine that describes the court’s deference to the decisions of the company’s directors. The paper stated:

“The Defendant ignores the facts of these 11 cases and fails to identify any transaction that would result in a better outcome for creditors. No one. And time is of the essence in these 11 chapters.”

Voyager also indicated that the agreement would preserve its “‘outbound credibility’ in the event of another higher or better deal.”

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Objections from the US Trustee and the states of Vermont, New York, Texas and Hawaii were dismissed in the document as “timeless.”

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The second, longer response, dated January 8, explained the relevance of the information provided in the proposal of Binance.US and argued in detail that other objections are premature and, in the case of Alameda Research, not School.

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Target: Investors trying to sell FTX, Celsius, BlockFi, Voyager claims

The SEC issued a limited objection to the Binance US plan Jan. 4 said the plan was not detailed enough. Alameda said the plan did not honor its loan requests, which Voyager said only entered into the loan agreement “based on AlamedaFTX’s fraudulent and false information.” Voyager entered into a $500 million loan agreement with Alameda to help cover losses incurred after the failure of crypto venture capital firm Three Arrows Capital.

Voyager filed for Chapter 11 bankruptcy on July 5. According to a court brief filed on January 8, Voyager entered into discussions with 96 other parties interested in its business.

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FTX US won the auction for Voyager assets in September. The bidding process was renewed after FTX went bankrupt, leading to bids from CrossTower, INX and others.