Presents voluntary requests for Chapter 11 protection to implement restructuring; The proposed reorganization plan creates an efficient way to regain access to the account and return value to customers
Voyager has approximately $ 1.3 billion in cryptographic assets on the platform, more than $ 350 million in cash in the FBO account for Metropolitan Commercial Bank customers and claims against Three Arrows of more than $ 650 million in capital1
NEW YORK, July 5, 2022 / PRNewswire / – Voyager Digital Ltd. (“Voyager” or “Company”) (TSX: VOYG) (OTCQX: VYGVF) (FRA: UCD2), announced today that it has initiated a voluntary chapter 11 process to maximize value for all stakeholders. As part of this process, the Company and its principal operating subsidiaries filed voluntary reorganization petitions under Chapter 11 in the United States Bankruptcy Court of the Southern District of New York (the “Court”). The company intends to apply for recognition of the Voyager Chapter 11 case to the Ontario Superior Court of Justice (commercial list) in accordance with the Corporate Creditors Agreement Act.
“This comprehensive reorganization is the best way to protect the platform’s assets and maximize value for all stakeholders, including customers,” said Stephen Ehrlich, CEO of Voyager. “The Voyager platform was created to empower investors by providing access to the trading of cryptocurrencies with simplicity, speed, liquidity and transparency. While I firmly believe in this future, prolonged volatility and contagion in the crypto markets over the past The arrears of Three Arrows Capital (“3AC”) on a loan from the company’s subsidiary, Voyager Digital, LLC, require us to take deliberate and decisive action now.The Chapter 11 process provides an efficient and effective mechanism. equitable to maximize recovery “.
The proposed Reorganization Plan (“Plan”), once implemented, would resume access to the account and return value to customers. Under this Plan, which is subject to change due to ongoing discussions with other parties, and requires the approval of the Court, customers with cryptocurrency in their accounts will receive in return a combination of cryptocurrencies in their accounts, income of the 3AC. recovery, ordinary shares of the newly reorganized company and Voyager tokens. The plan provides an opportunity for customers to choose the proportion of capital and crypto they will receive, subject to certain maximum thresholds.
Customers with USD deposits in their accounts will receive access to these funds after a fraud reconciliation and prevention process with Metropolitan Commercial Bank has been completed.
The company continues to evaluate all strategic alternatives to maximize value for stakeholders.
The company has more than $ 110 million in cash and proprietary cryptographic assets on hand, which will provide liquidity to support day-to-day operations during the Chapter 11 process, in addition to more than $ 350 million in cash held in the customer benefit (FBO account) at the Metropolitan Commercial Bank. Voyager also has approximately $ 1.3 billion in cryptocurrency assets on its platform, in addition to claims against Three Arrows Capital (“3AC”) of more than $ 650 million.
Voyager previously announced that its subsidiary, Voyager Digital LLC, issued a notice of default to 3AC for failing to make the required payments on its 15,250 BTC loan and $ 350 million USDC previously issued. Voyager is actively seeking all available resources for 3AC recovery, including through court-supervised processes in the British Virgin Islands and New York.
The company also announced the appointment of four new independent directors: Matthew Ray of Voyager Digital Ltd .; Scott Vogel of Voyager Digital Holdings, Inc .; and Jill Frizzley and Timothy Pohl at Voyager Digital LLC. At the end of this version information about your background and relevant experience is included.
As part of the reorganization process, the Company will present the usual “First Day” motions that allow it to maintain operations in the ordinary course. Voyager intends to pay its employees in the usual way and continue with its core benefits and certain uninterrupted customer programs. The company expects to receive court approval for all of these routine applications. Trading, deposits, withdrawals, and loyalty rewards on the Voyager platform remain temporarily suspended.
Parties with questions about the Chapter 11 process can contact the company’s claims agent, Stretto, at +1 (855) 473-8665 (toll-free in the U.S.) or +1 (949) 271-6507 ( for parts outside the US). They have also created a website that includes court documents and other information.
To carry out the restructuring process, the company has hired Moelis & Company and The Council Group as financial advisors, Kirkland & Ellis LLP as legal advisers and Berkeley Research Group, LLC, as restructuring consultants.
New independent directors to offer additional leadership and experience
Matthew Ray joins as an independent director of Voyager Digital Ltd. Mr. Ray is the founder and managing partner of Portage Point Partners, where he has served as General Manager of Restructuring (CRO), Executive Director (CEO), Chairman, Senior Independent Director, Chairman of the Special Restructuring Committee and Strategic Advisor leading transformations and restructurings wide for both private and public companies.
Scott Vogel joins as an independent director of Voyager Digital Holdings, Inc. Mr. Vogel has extensive experience being on numerous boards of financially struggling companies in a diverse set of industries. Mr. Vogel carefully and skillfully manages complex situations, develops restructuring plans and post-restructuring organizational priorities, creates consensus between and between stakeholders and management, executes complex capital and corporate market transactions, facilitates clear lines of communication and aligns management incentives to ensure accountability. .
Jill Frizzley joins as independent director of Voyager Digital LLC. Mrs. Frizzley is a corporate governance expert with extensive experience in corporate governance boards and advisory, restructuring, bankruptcy and mergers and acquisitions. Taking advantage of more than two decades of legal practice in financial restructuring and insolvency, Ms. Frizzley has a wealth of knowledge that includes corporate, financial and government issues in a wide range of industries.
Timothy Pohl joins as independent director of Voyager Digital LLC. Mr. Pohl has extensive experience and expertise in all aspects of corporate restructuring and financing, mergers and acquisitions, valuation, liquidity and balance sheet analysis and analysis, capital markets, corporate law, restructuring law and litigation. Currently, Mr. Pohl serves as a senior advisor in various situations, as well as an independent director for various corporations. Mr. Pohl has also advised in a wide range of industries and provided expert testimony on valuation and corporate and restructuring issues.
About Voyager Digital Ltd.
The US subsidiary of Voyager Digital Ltd. (TSX: VOYG) (OTCQX: VYGVF) (FRA: UCD2), Voyager Digital, LLC, is a cryptocurrency platform in the United States founded in 2018 to offer options, transparency and profitability. in the market. Voyager offers a secure way to exchange more than 100 different cryptographic assets using its easy-to-use mobile app. Through its subsidiary Coinify ApS, Voyager offers cryptographic payment solutions for both consumers and merchants around the world. For more information about the company, visit https://www.investvoyager.com.
Prospective statements
Certain information in this press release, which includes, among others, statements on the restructuring process, the Restructuring Plan, the resources available for the recovery of 3AC, the presentations planned as part of the restructuring process, the resumption of account access, the return of value to customers, the ability of Voyager to continue as a running company, the exploration of strategic alternatives, discussions with third parties on strategic alternatives and the results of these discussions , the temporary nature of the platform suspension, future growth and business performance. , the exploration of strategic alternatives, the future adoption of digital assets, anticipated trends and challenges in our business and industry, the regulation of the supply of digital assets, the impact of the 3AC default on the company, the liquidity of the company and the ability to meet customer orders and withdrawals and the expected results of the company may constitute forward-looking information (c collectively, forward-looking statements), which can be identified by the use of terms such as “may”, “will be”, “should”, “expect”, “anticipate”, “project”, “love”, “try,” “continue” or “believe” (or negatives) or other similar variations Prospective statements involve risks, uncertainties and other known and unknown factors that may cause Voyager’s actual results, performance or achievements to be materially different from any of its future results, performance or expressed achievements. or implicit by the statements pr perspectives. In addition, we operate in a highly competitive and rapidly changing environment. From time to time new risks arise. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any future. – look statements we can make. In light of these risks, uncertainties and assumptions, it is possible that future events and trends discussed in this press release may not occur and actual results may differ materially and adversely from those anticipated or implied in the forward-looking statements. It is not clear when or when the results of the …