BlockFi, the cryptocurrency lending platform that filed for bankruptcy five months ago, has reportedly been granted an extension to submit its plan for emerging from bankruptcy.
During a recent court hearing, Joshua Sussberg, BlockFi’s attorney, announced that the company is actively seeking a potential buyer for its assets and exploring various options to facilitate its restructuring process. As per court rulings, BlockFi has until May 15 to submit its exit plan application, which is a crucial timeline for the company to navigate the complexities of its bankruptcy proceedings.
BlockFi is currently exploring the possibility of selling its assets and searching for a partner to aid in its restructuring. Meeting the specified deadline is crucial for the company’s future success.
Judge Michael Kaplan granted an extension to BlockFi to ensure a smooth and orderly restructuring process. The decision was made to provide the company with the necessary time and flexibility to achieve a favorable outcome for all parties involved as it works to recover from its financial difficulties.
BlockFi filed for bankruptcy after its bailout partner FTX filed for bankruptcy on November 28. According to the bankruptcy code, a Chapter 11 plan should be presented within 120 days of filing for bankruptcy.
BlockFi was required to submit its Chapter 11 plan by March 27. Still, the company asked for an extension due to the situation’s complexity and the need for a comprehensive strategy to address its financial challenges.
On March 21, BlockFi initiated a restructuring process and requested a deadline extension for its Chapter 11 plan until June 26. The company required more time to develop a comprehensive strategy to ensure a sustainable future while addressing its financial challenges.
According to a BlockFi attorney, the cryptocurrency lending platform owes over $10 billion to over 100,000 lenders. BlockFi recently generated over $4.6 million to address its financial challenges by auctioning off its cryptocurrency mining assets. The company is now in the process of selling its remaining assets to further its financial goals.