The crypto lender platform BlockFi has secured additional time to submit its bankruptcy strategy plan after it went bankrupt five months ago.
Joshua Sussberg, an attorney for BlockFi, claimed that the business is actively considering selling its assets. In addition, the BlokFi platform is actively seeking a potential backer to help it with its restructuring.
Recent court rulings have mandated that BlockFi must submit its exit plan application by May 15. The court set this deadline, which marked a significant timescale for BlockFi as it navigated the complications of its bankruptcy proceedings.
Meeting this deadline will be critical in assuring BlockFi’s future success as the company investigates potential asset sales and seeks a sponsor to aid with restructuring.
This ruling was intended to help support a smooth and orderly process as BlockFi attempts to restructure its operations and recover from its financial troubles, according to Judge Michael Kaplan. The court hopes that granting this extension, it will give BlockFi the time and flexibility it needs to achieve a good settlement for all parties involved.
BlockFi declared bankruptcy after its bailout partner FTX declared bankruptcy on November 28. Debtors are required by the bankruptcy code to establish a Chapter 11 plan within 120 days of filing for bankruptcy.
BlockFi required the company to submit a strategy by March 27. However, given the complexities of the situation and the necessity for a comprehensive strategy to handle the company’s financial issues, BlockFi requested that this deadline be extended.
BlockFi filed for bankruptcy on March 21 and asked for an extension of the deadline for its Chapter 11 plan until June 26. The exchange platform requested more time to devise a comprehensive strategy for addressing its financial issues and ensuring its long-term viability.
According to a BlockFi attorney, the cryptocurrency lending company owes up to $10 billion to over 100,000 lenders. BlockFi recently claimed a $4.6 million profit from the auction of its Bitcoin mining assets. The corporation has now begun selling its remaining assets in order to meet its financial objectives.