Voyager Extends The Deadline For Bids Till September 6
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"Separately, since the establishment of a bid deadline for Voyager, existing and potentially new bidders have requested additional time to get information and submit their offers."
Different Forms Of Bids
Bids can take many different shapes, from merely offering to buy the company's assets to putting up a restructuring strategy or even providing assistance with the reorganization. The proposals may differ significantly in what they offer, from a monetary sum to the level of support in the restructuring, and once all the bids are in, Voyager counsel will analyze which ones give the most value to clients and creditors.
The court-approved bidding procedures clearly state that "there must be no communication between and among acceptable bidders, unless the Debtors, after consultation with the Committee, have previously authorized such communication in writing." This protects bidder confidentiality throughout the process.
However, when FTX and its sister company, Alameda, made their offer public two weeks after Voyager filed for bankruptcy, it sparked controversy.
The CEO Of FTX Praised The Offer
Sam Bankman-Fried, the CEO of FTX, has praised the offer as a way to give consumers early liquidity and a chance to get some of their assets without going through a more drawn-out and expensive bankruptcy process.
When FTX and Alameda announced their bid in late July, he said in a statement,
"The goal of our joint proposal is to help establish a better way to resolve an insolvent crypto business - a way that allows customers to obtain early liquidity and reclaim a portion of their assets without forcing them to speculate on bankruptcy outcomes and take one-sided risks."
Concerns Raised By Certain Businesses
In a recent hearing presentation, counsel claimed that certain businesses had raised concerns that FTX had an advantage in the process as a result of its public pronouncements, preventing them from submitting bids. With the claim that it had already received bids "that were higher and better than Alameda-FTX's proposal," counsel attempted to refute that idea.
Additionally, legal counsel handed the company a cease-and-desist letter about its public claims. After ceasing platform activities, Voyager started Chapter 11 bankruptcy procedures in July. Voyager counsel reported on August 4 that numerous offers had been received and that 22 parties were engaged in serious negotiations to submit bids.