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Voyager, Celsius, and Possible Bidding Opportunities


The Voyager Digital Holdings bankruptcy cases, along with the Celsius Network cases, provide a unique opportunity for parties to acquire assets and/or operations of each company. The bankruptcy court approved bidding procedures in an order issued in the Voyager cases that outlines the entire process and steps to be followed by anyone interested in submitting a bid. 

In the Celsius Network case, the bankruptcy court hearing on August 8 will consider the Celsius motion to establish a very similar process that will trail Voyager’s sale process by approximately one month.

Anyone interested in buying assets or operations from Voyager will need to follow the process outlined in the order to connect with Voyager’s advisors, sign a nondisclosure agreement (NDA), and structure a bid with the bid requirements to become a “Qualified Bid” as defined in the order.   

Submitting a Qualified Bid would allow the bidder to either win the bidding if no competing bids are received, or to attend the auction to participate in further bidding.  Submitting a Qualified Bid is a serious undertaking, requiring a good faith deposit of the greater of $5 million or 10% of non-coin-related value in cash to be held in an escrow account until the sale process concludes.

Timeline:

            Aug. 26          Deadline to submit Qualified Bids

            Aug. 29          Auction begins (if competing bids submitted)

            Aug. 31          Deadline to file objections to sale

            Sept. 7           Sale Hearing before bankruptcy court

The Bankruptcy Code enables bankruptcy courts to order that assets may be sold free and clear of preexisting liens, claims, interests, and encumbrances. Such orders provide buyers with a federal court ruling determining them to be the absolute owner of the assets sold and finding that the buyer proceeded with the acquisition in good faith. Those orders generally provide that the claims against the debtors and their assets attach to the sale proceeds and that the purchased assets will be free from those claims (subject to infrequent exceptions). 



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