It has been reported that BlockFi, the crypto lender platform that went bankrupt five months ago, has managed to secure additional time to submit its bankruptcy strategy plan.
During a recent hearing, BlockFi’s attorney Joshua Sussberg stated that the company is actively exploring options to sell its assets. He also revealed BlokFi platform is actively seeking a potential backer to assist with the company’s restructuring process.
In recent court rulings, it has been determined that BlockFi has until May 15 to submit its application for an exit plan. This deadline was established by the court and represented a critical timeline for BlockFi as the company navigated the complexities of its bankruptcy proceedings.
As the company explores potential asset sales and seeks a backer to assist with its restructuring, meeting this deadline will be crucial in ensuring BlockFi’s future success.
According to Judge Michael Kaplan, this decision was made to help facilitate a smooth and orderly process as BlockFi works to restructure its operations and recover from its financial difficulties. By granting this extension, the court aims to provide BlockFi the time and flexibility needed to pursue a successful outcome for all parties involved.
After its bailout partner FTX filed for bankruptcy on November 28, BlockFi also filed for bankruptcy. According to the bankruptcy code, debtors are expected to present a Chapter 11 plan within 120 days of filing for bankruptcy.
For BlockFi, the company needed to submit a plan by March 27. However, given the situation’s complexity and the need for a comprehensive strategy to address the company’s financial challenges, BlockFi requested an extension to this deadline.
On March 21, BlockFi filed for a restructuring process and requested an extension to the deadline for its Chapter 11 plan until June 26. The exchange platform sought additional time to develop a comprehensive strategy for addressing its financial challenges and securing a sustainable future.
A BlockFi attorney claims the cryptocurrency lending platform is up to $10 billion in debt to more than 100,000 lenders. BlockFi recently reported that it had made over $4.6 million in sales from auctioning its cryptocurrency mining assets. The company has now begun selling its remaining assets to further its financial goals.
