New Chapter 11 Filing – Voyager Digital

On July 5, 2022, New York-based cryptocurrency exchange, Voyager Digital Holdings, Inc. along with its publicly traded Canadian affiliate, Voyager Digital Ltd., filed a petition for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the Southern District of New York (Case No. 22-10943). The company reports $1 to $10 billion in both assets and liabilities.  The Debtors will pursue reorganization both through Chapter 11 in the U.S. and under the Companies’ Creditors Arrangement Act in Canada.

On July 5, 2022, the Toronto stock exchange halted trading of Voyager Digital Ltd.  The Debtors say their filings were driven by the recent drops in cryptocurrency prices and a significant payment default from borrower Three Arrow Capital, who filed its own Chapter 15 petition on July 1.  The Debtors are pursuing a plan sponsor to effectuate a stand-alone restructuring, which, as contemplated, would entitle account holders to certain liquid assets, recoveries from prepetition borrowers, and nearly all reorganized common equity.

Cole Schotz does not represent the Debtors in these cases.  We are posting this for informational purposes only.  If you have received a notice and have any questions, you should contact Debtors’ counsel.

Cole Schotz’s nationally renowned Bankruptcy & Corporate Restructuring group practices in Delaware, Maryland, New Jersey, New York, and Texas.

As the law continues to evolve on these matters, please note that this article is current as of date and time of publication and may not reflect subsequent developments. The content and interpretation of the issues addressed herein is subject to change. Cole Schotz P.C. disclaims any and all liability with respect to actions taken or not taken based on any or all of the contents of this publication to the fullest extent permitted by law. This is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Do not act or refrain from acting upon the information contained in this publication without obtaining legal, financial and tax advice. For further information, please do not hesitate to reach out to your firm contact or to any of the attorneys listed in this publication.

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