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In the words of Judge Michael Wiles, “We have creditors who are waiting and who in the midst of all this uncertainty have no access to property in which they've invested in some cases their life savings, so we have to take some kind of action.”
Judge Michael Wiles has approved Binance.US’ proposal for purchasing bankrupt lender Voyager’s assets despite significant opposition from US regulators.
The court ruling came a few weeks after a majority of Voyager clients voted in favor of the proposed restructuring plan.
BREAKING: U.S. bankruptcy judge approves Binance US $1.3 bln deal for Voyager
— whalechart 🐳 (@WhaleChart) March 7, 2023
Congratulations @cz_binance 👏
According to the judge, closing the $1.022B deal will allow Voyager users to receive roughly 73% of their owed assets.
Judge Wiles slammed the SEC’s objection to the deal during the four days of court hearings. He claimed that returning creditors’ funds was more important than resolving the time-consuming complaints from the regulators. He added,
"I cannot put the entire case into indeterminate deep freeze while regulators figure out whether they believe there are problems with the transaction and plan."
Going forward, Voyager will need to choose whether to accept Binance.US’ deal or liquidate the firm’s holdings on its own. Brian Tichenor, Managing Director at Moelis & Company, noted that closing the deal with Binance.US will allow Voyager to receive $100M more than the sum it would gain by self-liquidating.
The price of Voyager Token (VGX) surged following the court ruling. As of writing, VGX is valued at $0.4662, up by 18.5% within the last 24 hours.