Voyager Digital Chapter 11: Analyzing FTX's Proposal

On Friday, July 22, FTX Trading, West Realm Shires and Alameda Ventures offered to purchase Voyager Digital customers' unsecured claims including digital assets and loans outstanding. Under the terms of the agreement, Alameda would purchase Voyager's digital assets and loans except for loans made to Three Arrows Capital (3AC). As part of the agreement, Alameda would deposit cash in escrow for the digital assets in question. Voyager Digital customers have the option to roll their pro rata share of the cash proceeds into an FTX account to either withdraw, trade or re-invest the recovered funds with zero fees for one month and no gates or lock up period. Customers who KYC and on board to FTX will be paid within 45 days of the Closing Date. Part of Voyager's initial Chapter 11 filing puts unsecured claims at risk because their claims are valued as of the July 5 Petition Date. This means the claim values are not marked to market post-July 5. Unsecured creditors assume the risk of pricing volatility and restructuring costs that erode their viability to maximize recovery. 

To note, Alameda's $75mm loan reflects ~43% of the top 50 unsecured claims. As part of the transaction, Alameda will write off this loan. The terms of the agreement are opt-in with no minimum number of customers required. If an unsecured claims customer chooses not to roll their distribution into FTX, they can retain their rights and claims within the bankruptcy proceedings at the forfeiture of early access to their claims via FTX.