Voyager’s “Alternative” Restructuring Plan Removes Lending Platform

The former Voyager CEO and his father came up with a new restructuring plan in their own. In this plan, the company will eliminate its lending platform and focus solely on trading.

Voyager’s new restructuring plan

Shingo Lavine, a former chief innovation officer of Voyager, and Adam Lavine, his father and business partner, are opposing the troubled lender’s reorganization proposal and urging the bankruptcy court to consider his alternative.

The Lavines opposed Voyager’s move for an order authorizing logistics linked to approving its reorganization plan in a filing on Thursday. They proposed a strategy in which the company would stop all lending operations, incorporate live trading, and create a recovery token in order to keep consumers on the site.

Both Shingo and Adam are equity holders in Voyager. Together they built Ethos, which hosted a wallet application in addition to blockchain architecture that allowed developers to build a variety of applications. Voyager purchased Ethos in 2018, and Shingo took a seat on the board and as CIO before disagreements on the company’s direction led the two to part ways in 2021. Now, the father and son want their firm, Emerald, to become a key partner in Voyager’s restructuring and install themselves as the leaders of a new management team. 

“Specifically, Emerald has been exploring submitting an alternative restructuring plan that, while similar to the debtors’ plan in structure, would immediately re-build trust by changing management, re-implementing a robust self-custody solution, and focusing the business around trading: Eliminating the lending and debit card platforms, paring back costs, and restructuring around a mission of building a best in class self-custody and integrated trading solution.”

Voyager is looking for bids for the company and has already filed a restructuring plan. Emerald has not yet been accepted by Voyager as a “acceptable bidder.” This firm’s plan is being opposed by Emerald and the Lavines, who want other restructuring ideas like theirs to be taken into account first.

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