Ex-Voyager executive offers alternative restructuring plan

According to the new proposal, the company needs to stop all credit operations, integrate real-time trading, and issue a recovery token

30.07.2022 - 09:45

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What’s new? Shingo Lavine, former chief innovation officer at the crypto broker Voyager Digital, and his business partner Adam Lavine have opposed the lender’s restructuring plan and are calling for its alternative to be considered in bankruptcy proceedings. They have proposed a plan under which the company would cease all lending operations, integrate real-time trading, and issue a recovery token to keep users on the platform.

The Lavines’ proposal

How has Voyager responded to the proposal? Representatives of the crypto platform did not give Lavine’s group access to the diligence materials despite numerous requests and the provision of a confidentiality agreement, court documents said.

Voyager has already filed a restructuring plan and is seeking offers to buy the company that would provide customers with better terms. Under US bankruptcy rules, a bankrupt company often retains the exclusive right to decide how it will restructure until a judge strips it of that right.

On July 1, Voyager Digital announced that it had temporarily suspended trading, deposits and withdrawals, and rewards accrual. It had about $685 million in cryptocurrency in its accounts, while the volume of loans issued exceeded $1,1 billion. Half of this amount was allocated to the bankrupt hedge fund Three Arrows Capital.

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