Former Voyager Executive Wants Different Restructuring Plan for Embattled Firm

A Former executive of embattled crypto lender Voyager is opposing the current restructuring plan for the company and wants to tow a different line.

Shingo Lavine, who was Voyager’s chief innovation officer and board member until February 2021, and his father, Adam Levine, have filed an objection to the company’s proposed restructuring plan.

Lavine filed the objection with the United States Bankruptcy Court, Southern District of New York. Through Emerald Ocean Ventures, a crypto company he is currently running and said Emerald Ocean is filing as a creditor.

According to him, “we do not know the reasons why the Debtors have not been more accommodating, we are concerned that perhaps management may be seeking to keep control.”

Lavine’s Restructuring Plan

Lavine proposes an 8-step restructuring plan to see Voyager end its lending operations, offer unsecured creditors more benefits, issue a recovery token, and start live trading.

Part of the plan reads:

Provide major additional upside to unsecured creditors and incentivize customer retention through a “recovery token” in addition to VGX Tokens. Give everyone a shot at full, or even above 100%+ recovery.

In an email to Axios, Lavine explained the reason behind the objection:

We were trying to get into the data room and become an “approved bidder,” but to no avail thus far. We don’t believe this is very conducive to a fair bidding process — especially since we have a bona fide bid.

Additionally, he pointed out that Voyager’s bankruptcy resulted from its “risky, unprofitable and unsustainable” reward program.

The crypto downturn only hastened the firm’s collapse and wasn’t the major reason for its insolvency.

This objection further complicates matters for Voyager Digital, seeking to restructure quickly, and comes after the lender rejected FTX’s public buyout offer.

Federal regulators have already ordered Voyager to stop misleading customers that the Federal Deposit Insurance Corporation protects their deposits.

What do you think about this subject? Write to us and tell us!

The post Former Voyager Executive Wants Different Restructuring Plan for Embattled Firm appeared first on BeInCrypto.

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