- Oops!Something went wrong.Please try again later.
(Bloomberg) -- An erstwhile executive of bankrupt crypto lender Voyager Digital Ltd. is exploring a competing restructuring plan that would oust existing management and take the platform out of the lending business.
Most Read from Bloomberg
Former Chief Innovation Officer Shingo Lavine -- along with his father and another Voyager shareholder -- explained the broad strokes of their proposal in a bankruptcy court filing Thursday. Lavine left Voyager in early 2021 amid disagreements over the company’s direction, according to the filing.
In the plan, Lavine envisions a restructured Voyager that does not lend crypto and instead is focused on digital asset trading and customer security. Lavine and his father would lead the operation, according to court papers.
But Voyager has so far been uncooperative in helping Lavine advance the proposal, Lavine’s lawyers said. Advisers to the crypto platform had not let Lavine’s group access diligence materials as of Thursday despite multiple requests and submission of a confidentiality agreement, according to the court papers.
Voyager has already filed a restructuring plan and is seeking bids for the company that would provide customers with a better outcome. Under US bankruptcy rules, a bankrupt company often retains the exclusive right to decide how it will restructure until a judge terminates that right.
Representatives for Voyager did not immediately respond to an email seeking comment Friday.
The bankruptcy is Voyager Digital Holdings Inc., 22-10943, U.S. Bankruptcy Court for the Southern District of New York (Manhattan).
Most Read from Bloomberg Businessweek
©2022 Bloomberg L.P.