HomeCRYPTO NEWSFTX Proposal is a 'Low-ball Bid Dressed Up as a White Knight...

FTX Proposal is a ‘Low-ball Bid Dressed Up as a White Knight Rescue’ – Voyager


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Supply: AdobeStock / dimasobko

Crypto platform Voyager Digital argued {that a} joint supply proposed by crypto change FTX and linked buying and selling agency Alameda is a “low-ball bid” that would disrupt the corporate’s chapter course of, to which FTX CEO Sam Bankman-Fried replied that the supply would supply Voyager prospects with 100% of the remaining property that Voyager has, versus the “conventional” course of below which, earlier than prospects acquire their property, “they get fucked.”

“The AlamedaFTX proposal is nothing greater than a liquidation of cryptocurrency on a foundation that benefits AlamedaFTX. It’s a low-ball bid dressed up as a white knight rescue,” Voyager’s legal professionals mentioned in response to the bid in a lately submitted court docket submitting obtained by Bloomberg. 

The legal professionals declare that whereas Voyager will consider any “critical proposal” filed below the bidding procedures, the bid by FTX and Alameda, which is managed by Bankman-Fried and holds a significant stake in Voyager, is “designed to generate publicity for itself quite than worth for Voyager’s prospects”. The bid undermines a aggressive course of, declares Voyager’s platform holds no worth and mental property, and likewise ignores the potential deal’s tax penalties, amongst others, in keeping with the court docket paperwork.

FTX’s CEO claims that the concerned consultants “probably need the chapter course of to tug out so long as potential maximizing their charges. Our supply would let individuals declare property rapidly.”

“Anyway we have made our supply, hopefully prospects are allowed to decide on it if they need. If not guess it is as much as the consultants to make sure immediate liquidity,” he tweeted.

The bid is at the moment non-binding and has not been accepted by Voyager which says it’s present process a restructuring course of.

“Over the previous few days, main as much as our subsequent listening to on August 4, we filed a number of motions with the Courtroom to help our goal of maximizing worth for all stakeholders, together with prospects. These filings are a part of the restructuring course of, as we work collaboratively to reorganize the corporate,” the corporate mentioned in a July 22 assertion.

As reported, earlier this month, Voyager Digital filed voluntary petitions for aid below Chapter 11 of the US Chapter Code because it seeks to implement its reorganization plan and “maximize worth for all stakeholders.”

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Study extra: 
Voyager Digital Information for Chapter 11, Seeks to ‘Maximize Worth for All Stakeholders’
Voyager Seeks Chapter as Bankman-Fried Lifeline Fails

‘Crypto Savior’ FTX Is Reportedly Elevating Recent Capital at Newest Valuation of USD 32BN
Crypto Turmoil: 3AC Information for Chapter, FTX and BlockFi Agree, Suspensions at Voyager

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