Court Allows Binance.US Acquisition Bid for Voyager Assets to Proceed
The court ruling delivered on Tuesday, January 10, a hearing concerning Binance.US’ proposal to acquire Voyager’s assets made the acquisition closer to reality. Sitting in the New York Southern District Court, Judge Michael Wiles delivered a favorable ruling granting Binance.US the go-ahead in its $1.022 billion bid to acquire a bankrupt crypto lender’s assets.
Limited Objections Ruled as Non-Issues
Judge Wiles approved statements disclosed by Binance.US and Voyager during the Tuesday afternoon session. Nevertheless, he observed that attorneys drawn from the two parties should revise the order documents before presenting them for approval.
Judge Wiles dismissed limited objections raised by SEC and Alameda Research, thereby granting the green light to the proposed deal. Nevertheless, the ruling directed the parties to honor the strict timeline since the subsequent confirmation hearing of the acquisition deal is scheduled for March. Also, most bankrupt crypto lenders’ creditors must approve the proposed deal.
Binance.US Deal Prioritizes Creditors’ Interests
Binance.US proposed to take over Voyager’s assets from the reopened bidding process after the November FTX collapse, making the $1.4 billion offer from Sam Bankman-Fried’s empire unviable. Voyager’s representatives lauded the revised Binance.US offer as ideal amid the ongoing crypto winter.
Voyager’s attorney Joshua Susborg of Kirkland & Ellis dismissed objections lodged by state-level regulators, FTX, Alameda Research, and SEC as hypocritical since users would earn their refunds in cash and crypto. Attorney Sussborg’s submission to the court emphasized that proceeding with the Binance.US deal prioritizes the creditors’ interests.
Sussborg dismissed calls for Voyager to pursue the self-liquidation alternative. He dismissed the option as likely to delay the receipt of the trapped digital wealth to customers’ hands. The documents filed before the court indicated that swapping the Binance.US deal for self-liquidation would yield the least refunds to the customers.
Binance.US Can Afford Voyager’s Assets
Besides facing off with state regulators, Voyager and Binance.US attorneys are facing opposition from SEC, U.S. Trustee’s office, and the Committee on Foreign Investments in the U.S. (CFIUS). However, Judge Wiles termed the concerns raised were non-issues for the Tuesday hearing.
In her submission before the court, Christine Okike from Kirkland & Ellis supported the ruling and dismissed objections by New Jersey and SEC as misplaced.
Attorney Okike admitted overseeing the due diligence on Binance.US financials to confirm it could afford to settle the deal. She dismissed speculations of Binance.US receiving cash injections from its global firm to settle the acquisition.
Okike noted that Binance.US has adequate cash to settle $35 million, being the maximum that may become due.
Editorial credit: salarko / Shutterstock.com
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