The Toronto-based Voyager filed for Chapter 11 bankruptcy protections in the U.S. Southern District Court of New York back in July. At the time, it had around 100,000 creditors and between $1 billion to $10 billion in assets. The bankruptcy filing was followed by a bidding war to buy the embattled lender, which Sam Bankman-Fried's FTX winning the race in September.
In a letter to the court filed on Oct. 18, Voyager debtors said the sale to FTX US would allow customers to recover around 72% of the value of crypto held in their accounts on the platform, "provides stakeholders with the best possible recovery and facilitates the most expedient resolution" to the bankruptcy proceedings.
During a hearing on Wednesday, U.S. Bankruptcy Court Judge Michael E. Wiles approved an arrangement where Voyager can scrap the FTX deal if a better offer materializes that promises customers a chance to recover more of their funds, the report said. Wiles may consider approving Voyager's bankruptcy payout plan in December – a prerequisite for approving the sale.
The firm also requested Wiles' permission to send its payout plan to customers for a vote, Bloomberg reported. Even if creditors vote in favor, Wiles still has the final say on the sale.
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