Digital asset brokerage firm Voyager Digital has received overwhelming support from its clients for its $1.1 billion bankruptcy plan, with 97% of voters backing the proposal.
The plan involves merging with LGO, a European digital asset exchange, and issuing a new class of shares to pay off debts. Voyager filed for bankruptcy last year after a failed acquisition deal with Circle.
In a statement, Voyager CEO Steve Ehrlich said the vote was a “major milestone” in the company’s restructuring process and thanked its clients for their support. He added that the company is now one step closer to emerging from bankruptcy stronger than before.
The bankruptcy plan still requires approval from the US Bankruptcy Court. However, the positive vote from clients is expected to increase the chances of the court approving the plan.
Voyager has continued to operate during the bankruptcy process, with the company reporting record quarterly revenue of $8.5 million in Q4 2021. The firm has also recently launched its own stablecoin, USD Coin (USDC), and announced plans to expand into Europe and Asia.
If the bankruptcy plan is approved by the court, Voyager and LGO will merge to create a new entity called Voyager Digital (Canada) Ltd. The new company will operate in the US, Canada, and Europe and will be publicly traded on the Toronto Stock Exchange.