Benzinga - Significant components of the Voyager-Binance.US acquisition deal might be permitted to move forward even as legal appeals are being addressed, according to court documents filed Wednesday.
This development arises amid growing apprehension that the buyer may withdraw from the deal.
What Happened: The court filing indicates the U.S. government has consented to let the majority of Binance.US's $1-billion transaction to acquire the bankrupt cryptocurrency lender's assets go ahead, despite concerns regarding the contract's fine print potentially excusing violations of tax or securities law, Coindesk reported.
The April 19 document suggests the disputed "exculpation provisions" should be suspended until the appeal is resolved, but not the rest of the agreement.
The filing states, "The plan and confirmation order contemplate certain transactions and other steps, including making certain distributions to Debtors’ account holders... the parties agree that these transactions may go forward while this appeal is litigated and resolved."
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This statement was signed by a U.S. attorney, a U.S. trustee involved in bankruptcy matters and attorneys representing Voyager and its creditors.
Judge Jennifer Rearden has not yet approved it.
In December, Binance.US initially proposed purchasing Voyager's assets, which Bankruptcy Judge Michael Wiles approved in March following a survey of Voyager creditors that demonstrated overwhelming support for the deal.
Lawyers representing the bankrupt firm have expressed concerns that Binance.US may back out of the transaction once a four-month deadline passes, potentially causing an additional $100-million loss for the estate. On April 11, the Second Circuit Court of Appeals rejected a bid to expedite the proceedings.
Disclosure: Benzinga CEO Jason Raznick is a member of the unsecured creditor committee in the Voyager Digital bankruptcy case.
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