It’s not typically a borrower bails out its lender, particularly when it’s to the tune of lots of of tens of millions of {dollars}.
Alameda Analysis, the agency based by crypto billionaire Sam Bankman-Fried that final month prolonged a $500 million line of credit score to crypto dealer Voyager Digital, itself owes the corporate $377 million, in response to Voyager’s Chapter 11 chapter submitting.
It’s an sudden revelation that’s come to gentle by the use of a chapter that’s appeared like a foregone conclusion since Voyager disclosed that hedge fund Three Arrows Capital owes it greater than $600 million.
A desk on web page 13 of the chapter submitting, which was submitted in a New York district courtroom at present, exhibits that Alameda Analysis owes Voyager $377 million at an rate of interest of 1% to five%. The excellent stability features a $75 million unsecured mortgage, in response to an inventory Voyager’s largest unsecured claims on web page 119 of the submitting.
Alameda Analysis didn’t instantly reply to a request for remark from Decrypt.
Alameda’s debt makes it Voyager’s second largest borrower after the bancrupt Three Arrows Capital, which additionally goes by 3AC.
When the extent of 3AC’s bother turned clear, largely due to $200 million it misplaced within the Terra collapse in Could, its lenders started to comprehend that massive 3AC loans on their books had been about to enter default.
As soon as 3AC was not in a position to make funds, Voyager issued a default discover final Monday. Then, on Wednesday final week, a British Virgin Islands courtroom ordered 3AC to liquidate. Meaning 3AC should stop all operations and permit the courtroom to supervise the promoting of its property to offset what it owes collectors, together with Voyager Digital.
It’s value declaring that Sam Bankman-Fried, founder and CEO of cryptocurrency change FTX, has a vested curiosity in seeing Voyager made complete. At one level, Alameda and its enterprise arm, Alameda Ventures, had been the only largest Voyager shareholders with 11.6% of all excellent shares, in response to a June 17 press launch.
On the time, Voyager inventory (VYGVF) was buying and selling at simply over $1.
Per week later, on June 23, Alameda introduced in a press launch that it had surrendered, or returned in change for no cash, 4.5 million of its shares. These shares had been value $2.6 million on the time and VYGVF was buying and selling at $0.56 per share.
Alameda’s share give up introduced its stake within the firm to 9.49%—slightly below the 10% threshold that might have made it an “insider” within the eyes of the U.S. Securities and Trade Fee. This is identical SEC rule that required Tesla CEO Elon Musk to reveal his stake in Twitter in April, forward of creating an acquisition supply.
On Wednesday afternoon, after the Toronto Inventory Trade suspended buying and selling of Voyager Digital’s inventory, it ended the day buying and selling at $0.27.
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