FTX filed its presentation to the Official Committee of Unsecured Creditors (UCC), reporting that FTX has located about $5.5 billion of cash and other liquid assets but less than $1.8 billion of digital assets identified with both FTX.com and FTX US, excluding illiquid tokens. FTX reported that it expects to find and liquidate additional assets
Is There an Easter Egg in the Celsius Earn Accounts Opinion?
“Easter eggs are basically messages or particular references deliberately hidden throughout a movie that the usual movie-goer often fails to notice but they are always there.”
Most articles about Chief United States Bankruptcy Judge Michael Glenn’s opinion that “Earn Assets in Earn Accounts constitute property of the Estates” (opinion, p. 45) focus on the…
If You Missed It Live, You Can Replay the FTX Trading Ltd. Bankruptcy Hearing
Bankruptcy court hearings are often recorded and can be listened to at your convenience. The “first-day hearing” in the FTX Trading case occurred on November 22, 2022, was saved into two files with the first part available here and the second part available here.
The links will download a PDF file that contains an…
Voyager Bankruptcy Exit Derailed by FTX’s Bankruptcy Entrance
Bankruptcy court hearings to confirm Chapter 11 plans, which set forth how the company seeks to exit bankruptcy, are frequently delayed. These hearings are infrequently canceled. But on November 15, 2022, Voyager canceled its scheduled December 8, 2022, confirmation hearing, citing the FTX bankruptcy filing as the cause.…
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Crypto-Related Bankruptcies Timeline
The Crypto-Related Bankruptcies Timeline serves as an interactive compilation of select dates relating to bankruptcies of companies involved in cryptocurrency, including hedge funds, lending companies, and exchanges. Beginning with Mt. Gox filing for Chapter 15 bankruptcy protecting in February 2014, the Timeline includes relevant information regarding crypto-related companies that filed for bankruptcy protection, as well…
Celsius Bidding Procedures Create Possible Bidding Opportunities
The Celsius Network bankruptcy cases provide another opportunity for parties to acquire their assets and/or operations. As predicted in an earlier post, the bankruptcy court issued an order in the Celsius cases, approving bidding procedures that outline the entire process and steps to be followed by anyone interested in submitting a bid.
Anyone interested in buying assets or operations from Celsius will need to follow the process outlined in the order to connect with the advisors to Celsius, sign a nondisclosure agreement (NDA), and structure a bid with the bid requirements to become a Qualified Bid* as defined in the order. …
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Voyager—Bankruptcy Timelines Begin to Slide
A host of reasons can cause bankruptcy timelines to slide—ongoing negotiations, buyers dealing with their lenders, holidays, court scheduling issues, perhaps a dearth of interested buyers, and more. These types of changes are usually more of a stew of events than they are attributable to any single ingredient.
An earlier post included a timetable for the Voyager sale process that contemplated a September 8 hearing to approve one or more sale of assets to an as-of-yet-undetermined bidder or bidders. Voyager also initially planned for a Chapter 11 plan confirmation process that would have a disclosure statement hearing on September 29.…
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Big Move in Celsius – Will Parties Get a Deeper Look from an Examiner’s Review
Something big happened the Celsius bankruptcy case last week. The filed by the Office of The United States Trustee (“UST”), a part of the US Department of Justice, has filed a motion asking the Court to appoint an examiner in the Celsius chapter 11 case. According to the UST, an examiner is needed because of:…
Voyager Holdings—Disclosure Statement and Plan Leave Customers and Creditors Asking “Who’s on First?”
Voyager filed its Disclosure Statement and First Amended Plan (Plan) on Friday, August 12. A primary purpose of a Chapter 11 plan is to define how creditors’ and customers’ claims are proposed to be treated. For a business such as Voyager’s, the plan would be expected to include how customers’ claims will be treated. A disclosure statement typically describes the plan, the debtors’ history, events leading to bankruptcy, and for debtors that intend to operate after bankruptcy, includes projections of its future under the plan (along with a liquidation analysis to compare the plan with a liquidation of the debtors).
Calling Voyager’s Plan a shell is an overstatement to anyone who has ever searched for crustaceans by the seashore. It does not indicate what customers or creditors will receive. It does not indicate what Voyager’s future will or may hold, since the bidding process is still underway and there is no way to know whether there will be one or more “white knights” or if Voyager will seek to keep existing management in charge.…
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Voyager Bankruptcy Shows a Smorgasbord of Digital Assets
As we’ve previously noted, customers and other creditors of Voyager Digital Holdings face a deadline to file official “proofs of claim” setting forth the amounts they assert that Voyager owes them. The deadline is 5:00 p.m. ET on October 3, 2022. Information regarding the deadline, filing requirements, and procedures is available in the bankruptcy court’s order that established the deadline.
The court-approved proof of claim form for customers can be found here.
Proofs of claim can be filed electronically here.…
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