Binance and Voyager deal gets U. S. approval
Binance and Voyager deal gets U. S. approval
2023.01.11 01:54
Binance and Voyager deal gets U. S. approval
By Ray Johnson
Budrigannews.com – Voyager Digital, a bankrupt crypto lender, has received preliminary court approval for its plan to sell its assets to Binance. for $1.02 billion in the US.
The approval comes amid a Binance security investigation. US that Voyager wants to move faster.
According to a report published on January 11 by Reuters, Voyager was granted permission to enter into the asset purchase agreement and obtain creditor approval on January 10 by Judge Michael Wiles of the United States Bankruptcy Court for the Southern District of New York. However, the sale will not become final until a subsequent court hearing.
It comes at a time when Voyager wants to review its proposal to sell assets to Binance quickly. US, which could cause the deal to be stopped or put off.
During the court hearing, Voyager’s attorney Joshua Sussberg said that the company has been answering questions from the Committee on Foreign Investment in the United States (CFIUS) and will address any concerns that CFIUS may have that could lead it to oppose the transaction.
“We are coordinating with Binance and their attorneys to not only deal with that inquiry, but to voluntarily submit an application to move this process along,” Sussberg stated. “We are coordinating with Binance and their attorneys.”
CFIUS is an interagency body that examines U.S. company acquisitions or foreign investments for potential threats to national security.
CFIUS has the authority to either cancel the deal or block it if it determines that there are legitimate concerns about the deal’s impact on national security. It can also instruct the parties involved to modify the agreement to mitigate those concerns.
On December 30, CFIUS sent a notice to the court stating that “one or more transactions contemplated” by Voyager might be reviewed, which could lead to blocks or delays.
The global entity of Binance is reportedly the subject of an investigation by the U.S. attorney’s office regarding allegations of money laundering; however, its CEO, Changpeng “CZ” Zhao, has stated that Binance. With headquarters in California, the United States is a “fully independent entity.”
Zhao is a Canadian citizen who was born in China. CFIUS has the authority to look into any deals that could give a foreign person control of a U.S. business or give them an equity stake.
The deal was supported in its current form by the Voyager Official Committee of Unsecured Creditors, which is a body that represents creditors who do not have any security interests in Voyager. They noted that the deal would result in greater recoveries for creditors than if Voyager liquidated its holdings itself, which is what would happen if CFIUS blocked the transaction.
6/ This change, along with other agreed-upon terms reflected in the Amended APA (link below), has made the UCC comfortable with the transaction and garnered the UCC’s support.
— Voyager Official Committee of Unsecured Creditors (@VoyagerUCC) January 10, 2023
On January 8, the bankrupt lender rebutted Alameda Research, the Securities and Exchange Commission, four U.S. states, and the U.S. trustee’s objections to the acquisition proposal.
Voyager asserted that the opposition “fails to put forward any factual or legal support” for its arguments and that the transaction is in the best interest of its creditors.
On December 19, Voyager made the agreement with Binance public. US’s attempt to acquire its assets for $1.022 billion following the failure of a $1.4 billion deal with FTX.US as a result of the crypto exchange’s bankruptcy.
