📍 Las Vegas, NV, USA. on 23rd Oct 2022 at 00:00
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It is unusual for a borrower to save their lender money, especially when it amounts to hundreds of millions of dollars.
According to Voyager Digital's Chapter 11 bankruptcy filing, Alameda Research, the company formed by Sam Bankman-Fried last month issued a $500 million line of credit to the cryptocurrency broker, owes the company $377 million.
Given that Voyager acknowledged that hedge fund Three Arrows Capital owes it more than $600 million, the bankruptcy that has since been inevitable has revealed an unexpected finding.
Alameda Research owes Voyager $377 million at an interest rate of 1 percent to 5 percent, according to a chart on page 13 of the bankruptcy filing, which was presented in a New York district court today. Voyager's greatest unsecured claims are listed on page 119 of the petition, including a $75 million unsecured loan.
Voyager's second largest borrower after the bankrupt Three Arrows Capital, popularly known as 3AC, is Alameda thanks to its debt.
Large 3AC loans on their books were set to default as the severity of 3AC's problems became apparent, partly as a result of the $200 million it lost in the Terra collapse in May.
Voyager sent a default notice on Monday after 3AC stopped being able to make payments. Afterwards, a British Virgin Islands court issued a liquidation order for 3AC on Wednesday of last week.
As a result, 3AC must stop all business operations and permit the court to supervise the sale of its assets in order to pay off its debts to creditors, notably Voyager Digital.
It's important to note that Sam Bankman-Fried, the founder and CEO of the crypto exchange FTX, has a stake in the recovery of Voyager. With about 12% of all outstanding shares at one point, Alameda and its venture arm, Alameda Ventures, were the sole largest stockholders in Voyager, according to a press release from June 17.
On June 23, Alameda announced in a press statement that it had returned 4.5 million of its shares in exchange for nothing. At the time, VYGVF was trading at $0.56 per share, and those shares were valued at $2.6 million.
With the surrender of its shares, Alameda's ownership in the company decreased to 9.49 percent, barely shy of the 10 percent level needed to qualify as an "insider" in the eyes of the U.S. Securities and Exchange Commission. Elon Musk, CEO of Tesla, was compelled to disclose his Twitter ownership under the same SEC rule in April before making an acquisition proposal.