There is much to report since our last update on Voyager Digital’s bankruptcy case discussed here. 

• Importantly, the court set a “bar date” with respect to claims arising prior to the petition date.  Proofs of claim, including those with respect to administrative claims arising under section 503(b)(9) of the Bankruptcy Code, must be actually received by Voyager’s claims agent on or before 5:00 p.m. Eastern Time on October 3^rd.  Procedures for filing or electronically submitting proofs of claim can be found on the claims agent’s site:  Voyager Digital Holdings, Inc., et al. (stretto.com)
• The court approved Voyager’s motion regarding bidding procedures with respect to the potential sale of its equity or certain or all of its assets. Bids must be received by August 26^th and an auction will be held on August 29^th, if needed. Bids may be for the company’s equity or some or all of the company’s assets and may also contemplate acquisition through a plan of reorganization. Objections to any proposed sale must be received by September 6^th and a hearing to approve any sale will be held on September 8^th. In the event that the company is able to identify a purchaser to act as a “stalking-horse” for any assets, it will file a notice of the same. Generally, a stalking-horse purchaser serves to set a floor for value and helps standardize contracts for bidding purposes. In exchange, they are often entitled to certain bid protections (e.g., a break-up fee and expense reimbursement).
• Voyager filed its first amended plan of reorganization and related disclosure statement on August 12^th. Among other things, the revisions in the plan remove Alameda Ventures Ltd, and its affiliates from those parties that would be released upon confirmation. There are no changes to the proposed treatment of customer claims. A hearing on the motion to approve the adequacy of the disclosure statement has been scheduled for September 15^th. The company has asked that solicitation packages be delivered to creditors by September 26^th and that votes be cast by October 24^th. If this schedule holds, a confirmation hearing could be held in early November. In its newly filed disclosure statement, Voyager provides some greater detail regarding hurdles to confirmation or a third-party sale, including with respect to its money transmitter licenses and applications. They note that state banking authorities have broad approval rights over any transfer of the licenses or applications.
• As has been reported, Voyager has received approval to return funds to customers that were maintained in custody in two separate FBO accounts at Metropolitan Commercial Bank.
• Some customers have sought recovery outside of the protective confines of Voyager’s bankruptcy case. On August 10^th, certain customers commenced a putative class action in Florida naming Stephen Ehrlich (Voyager’s CEO), Mark Cuban and Dallas Basketball Limited as defendants. The complaint alleges causes of action including aiding and abetting fraud and breach of fiduciary duty, civil conspiracy and unjust enrichment, among other things. This action followed another putative class action that was commenced by a customer in Canada in early July. The action asserts claims against one of the debtors, and certain current and former directors and officers asserting liability under Canadian securities laws and negligent misrepresentation. Voyager has asked the bankruptcy court to rule that the automatic stay (which protects debtors from certain adversary actions) be extended to the various D&O defendants in the Canadian action. We expect that they will similarly seek to stay proceedings against Mr. Ehrlich in the Florida action.