The customers can expect to start withdrawing funds between July 20th to July 5th.
The crypto brokerage, Voyager Digital, is preparing to reopen its app to customers for fund withdrawals nearly a year after it declared Chapter 11 bankruptcy.
This update comes from Paul Hage, the appointed bankruptcy plan administrator for Voyager, in a court filing on June 14th.
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The man anticipates that the Voyager app will display the available withdrawal amount from June 15th onwards and estimates the withdrawal window to open between June 20th and July 5th.
On May 17th, the court approved the bankruptcy plan, proposing that customers will initially reclaim 35.72% of their claims via the Voyager app after a 30-day waiting period.
However, Hage’s filing also highlights a significant outstanding debt owed by the bankrupt crypto hedge fund, Three Arrows Capital, to Voyager, amounting to $650 million.
According to Hage, after initial fund distribution, the primary focus will shift to recovering more assets to repay the creditors. There’s potential for an additional $445 million of customer funds to be allocated to creditors, contingent on the final resolution of Alameda Research’s preference claim against Voyager. This resolution, however, is not foreseen until at least mid-September 2023.
Voyager initially filed for bankruptcy on July 5th, 2022, and has since put forth two previous bankruptcy plan proposals, both of which were unsuccessful. Initially, the United States subsidiary of FTX, FTX US, was set to purchase the company’s assets for $1.4 billion. However, the deal eventually fell through as FTX filed for bankruptcy.
A subsequent proposal of a $1 billion deal with Binance.US failed when the latter withdrew on April 25th, citing a “hostile and uncertain regulatory climate in the United States.”
While the company is still grappling with the aftermath of its bankruptcy filing, it is taking significant steps to allow its customers to withdraw their funds. Despite the complexities and hurdles, it remains hopeful for a successful resolution that would allow for the recovery of additional assets.
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