After filing for Chapter 11 bankruptcy restructuring in July as a result of 3AC’s loan default and its debts surpassing $1 billion, the centralized crypto lender turned down an offer from FTX to purchase its assets.
Voyager Digital, a failed centralized cryptocurrency lender, informed the United States Bankruptcy Court for the Southern District of New York on Tuesday of its intention to hold an auction of its remaining assets.
The notice was filed with the court as part of Voyager Digital’s attempt to inform the court of its intention to hold the auction. The auction is scheduled to take place on September 13 at the Manhattan office of Moelis & Company, which is Digital Voyager’s investment banker.
The outcomes of the auction will be subject to a hearing on September 29. Offers that have previously been made for the lender’s assets are being considered.
The Auction Had To Be Rescheduled Since There Were Not Enough Bids
The date of the auction has been set in the past for August 29. In order for an auction to take place, it is necessary for a number of different parties to express an interest in the purchase of Voyager Digital’s assets.
On July 22, FTX submitted an offer to purchase all the assets and digital asset debts owned by Voyager Digital, with the exception of the loans owed to Three Arrows Capital (3AC).
The lender considered the offer to be too low and promptly declined it after a few days’ consideration.
Voyager suspended all deposits, withdrawals, trading, and loyalty benefits on July 1. The business announced on July 5 that it will be filing for Chapter 11 restructuring in order to deal with its more than $1 billion in debt.
According to the announcement, customers who held cryptocurrencies would receive a combination of their existing cryptocurrencies, funds from the 3AC recovery, common shares in the reorganized Firm, and Voyager tokens.
Voyager Digital Took the Legal Route against Three Arrows Capital
The bankruptcy of Voyager Digital was announced just a few days after the company had sent a default notice to Three Arrows Capital, the party that owed it 15,250 Bitcoin (BTC) and 350 million USD Coin.
Voyager Digital had been exploring legal remedies against Three Arrows Capital prior to filing for bankruptcy (USDC).
Customers were reassured at the time by Voyager Digital that the company would keep servicing their accounts. Additionally, it made contact with Moelis at that time.
Voyager Digital was granted permission by the court in August to pay bonuses amounting to $1.9 million to the employees who were instrumental to the company’s operations.
These were the employees that the company claimed was essential to the company’s ability to continue business as usual. Despite opposition from investors, the court granted this request.
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Image and article originally from insidebitcoins.com. Read the original article here.