Voyager Rejects Buyout Offer From Alameda and FTX, Says it is a “Low-Ball Bid”
- Crypto lender Voyager disclosed in its letter that the duo’s proposal demands that FTX will serve the role of liquidator.
- However, the company believes the proposal will be harmful to its customers.
Troubled crypto lending firm, Voyager Digital Holdings has rejected a proposal to buy out its digital holdings from Sam Bankman-Fried Firms Alameda and FTX. The crypto lender describes the offer as a “Low-Ball Bid”.
A few days ago, Voyager’s competitors and largest stakeholders, Alameda Ventures Ltd and FTX Trading Ltd jointly made an open offer to buy out all of Voyager’s digital assets and outstanding loans. In response to the proposed deal, Voyager filed a letter of rejection on Thursday to outrightly dismiss the buyout offer.
Voyager Dismisses Buyout Offer
According to the letter, Alameda and FTX’s proposal came after Voyager disclosed plans for a Reorganization on July 5. The company said it had filed a proposed stand-alone Plan of Reorganization before Alameda-FTX’s buyout offer. Voyager claimed the plan was aimed at reorganizing the company in such a way that it could return all customers’ cash and cryptocurrencies within the custody of Voyager’s platform as soon as possible. Furthermore, the company is also seeking to provide affected users with additional recovery in the form of both the equity of reorganized Voyager and any recovery against Three Arrows Capital.
Voyager noted that it has sought for alternatives following concerns to confirm if there are other measures that could outgain the stand-alone plan. In a bid to accommodate possible alternate solutions, the company further filed a Bidding Procedures Motion seeking to thoroughly and promptly complete that process. This apparently led to Alameda and FTX’s open proposal to buy the firm’s assets which came a day after.
Voyager expressly disclosed that the duo’s proposal demands that FTX will serve the role of liquidator. The liquidation term will see customer’s cryptocurrency claims being converted into U.S. dollars
based on prices as of July 5, 2022. The cryptocurrency claims will consequently be paid in the U.S. dollars too. Thus, customers will be charged with the responsibility to bear the tax consequences associated with dollarizing and liquidating their claims. Voyager believes the proposal will be harmful to its customers.
Although Voyager admitted it has filed a Bidding Procedures Motion, however, it is refusing the buyout offer, claiming it was made in contravention of the proposed Bidding Procedures. Voyager explains that its initially proposed stand-alone Plan proves more profitable to customers than the proposal from Alameda and FTX.
According to the filings, Voyager noted that the companies’ proposal is misleading and specifically designed to generate publicity for itself rather than value for Voyager’s customers.
” The Alameda and FTX’s proposal is nothing more than a liquidation of a cryptocurrency on a basis that advantages them, It’s a low-ball bid dressed up as a white knight rescue,” the company said.
Nonetheless, the crypto lender assured that it is open to accommodating any serious proposal made pursuant to the Bidding Procedures described in its Motion.