FTX Trading, Voyager Digital choose Chapman to guide their mediation

By Sarah Lizee

Olympia, Wash., June 27 – FTX Trading Ltd., its official committee of unsecured creditors and the plan administrator for Voyager Digital, LLC have chosen retired judge Shelley C. Chapman to guide their mediation, according to an agreed order filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, FTX, Voyager, and their respective official committees of unsecured creditors entered into a stipulation that aimed to resolve disputes between the parties.

FTX said the agreements embodied in the stipulation would allow the FTX debtors to focus their resources on what they believe is the primary source of value for their estates with respect to the Voyager debtors – the preference claims – by resolving disputes over Voyager’s plan of reorganization and FTX’s prepetition proofs of claim filed against the Voyager debtors.

The stipulation also required Voyager to establish a cash reserve in the amount of $445 million on account of the preference claims so that, if FTX prevails, there is value available to satisfy FTX’s claims.

The agreement also established a framework for the litigation of the preference claims.

As previously reported, Voyager’s Chapter 11 plan of liquidation went effective on May 19. Voyager had noted in its plan that creditor recoveries may increase depending on if it prevails in the preference dispute.

FTX has headquarters in the Bahamas. The company filed Chapter 11 bankruptcy on Nov. 11, 2022 under case number 22-11068.

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