BlockFi is steadily advancing towards the restructuring of its organization. The U.S. Bankruptcy Court in New Jersey has granted conditional approval to the firm’s disclosure statement, marking a significant step in the company’s journey toward recovery.
“Throughout this reorganization process, our main objective has been to amplify recoveries for our creditors,” stated Mark Renzi, BlockFi’s Chief Restructuring Officer, representing Berkeley Research Group. “The conditional green light on our Disclosure Statement puts us on the brink of achieving this aim.”
Renzi exuded confidence that their plan would be the fastest way to restore clients’ crypto assets. He ardently implored BlockFi’s clientele to vote in favor of the plan.
BlockFi’s energy will pivot towards recuperating funds from expired firms like Alameda, FTX, 3AC, Emergent, Marex, and Core Scientific upon bankruptcy plan approval.
Critics Cast a Shadow on the BlockFi Bankruptcy Plan
Despite BlockFi’s strides, the proposed bankruptcy plan isn’t without detractors. Prominent names like FTX, Three Arrows Capital (3AC), and the Securities and Exchange Commission (SEC) stand among the dissenters. These entities have previously expressed their concerns via CoinDesk, stating that BlockFi’s plan unduly devalues their claims.
They argue the plan lacks procedural fairness and is excessively forgiving towards BlockFi and its management. The broad scope of the plan, they say, absolves the company from legal accountability over contentious transactions worth over a billion dollars.
Three Arrows Capital (3AC), facing liquidation, stated in early July its intention to recoup $220 million from BlockFi through “preferential payments.”
The Impending Deadline: A Call to Decision
The proposed reorganization plan awaits the voting deadline of September 11. A decision that could steer the course of BlockFi’s future.
The BlockFi restructuring process continues to be a dynamic and evolving situation. As stakeholders watch and wait, the company forges ahead to deliver the best outcome for its creditors and clients.
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