VGX up 38% as court approves Binance.US’s Voyager deal
A federal bankruptcy judge in the United States on March 7 approved Voyager’s long-awaited restructuring plan with Binance.US.
Following the news, Voyager’s token VGX soared by almost 38% in the last 24 hours, according to data from CoinMarketCap. However, the agreement is yet to receive some essential sign-offs.
According to a Reuters report, Binance.US has agreed to pay $1.3 billion to acquire Voyager’s assets. The billion-dollar payoff accounted for “the bulk of the deal’s valuation.”
The numerous creditors of Voyager have been putting more and more pressure on the company to fulfill their claims, including retail consumers whose assets have been trapped on the platform since 2022.
Voyager’s efforts to deal with those claims have encountered numerous obstacles, including objections by regulatory bodies.
Binance.US agreed to pay $1.022 billion to buy Voyager outright in December 2022. However, the SEC intervened in the interim to raise objections, slowing down the bankruptcy procedures.
Following the announcement of Binance.US’s initial handshake deal, the price of Voyager’s VGX token increased by more than 40% before falling back considerably.
Voyager’s challenging restructuring attempts
Voyager Digital’s efforts to rebuild since its bankruptcy filing last summer have been complicated, with the company experiencing several false breakthroughs followed by huge losses.
Its fortunes appeared to alter in August when it revealed that many corporations were interested in acquiring its assets, causing VGX to increase substantially.
Soon after, it discovered that Binance and FTX were the highest bidders for Voyager’s assets before officially disclosing that FTX would buy the bankrupt company’s assets for $1.3 billion. This, however, failed in November 2022 when FTX declared bankruptcy.
Voyager’s fortunes changed again in late 2022 when it announced a $1 billion arrangement with Binance’s US office.
However, the transaction was soon met with another hurdle when the Securities and Exchange Commission (SEC) submitted the first of its objections.