The United States Bankruptcy Court for the District of New Jersey approved the Disclosure Statement of BlockFi Inc. on August 2, 2023.
“BlockFi’s mission through this process has been to maximize recoveries for our creditors, and conditional approval of our Disclosure Statement moves us one step closer to accomplishing that goal,” said Mark Renzi of Berkeley Research Group, BlockFi’s Chief Restructuring Officer, in a statement.
“We are confident that our Plan provides the best path to expeditiously return crypto back to our clients and we strongly urge BlockFi’s clients to vote to accept it,” he added.
The lender added that if the bankruptcy plan is approved it will focus its efforts on recovering money from other inoperative firms Alameda, FTX, 3AC, Emergent, Marex, and Core Scientific.
All of BlockFi’s creditors will receive a Solicitation Package from the Company’s claims, noticing, and solicitation agent, Kroll. BlockFi’s eligible creditors have the opportunity to vote in favor of the Plan and will receive BlockFi’s Disclosure Statement and Plan, detailed voting instructions, and additional important information.
In order for a vote to be counted, it must be actually received by Kroll on or before September 11, 2023, at 4:00 p.m. current Eastern Time.
FTX, Three Arrows Capital (3AC), and the Securities and Exchange Commission (SEC) have objected to BlockFi’s proposed bankruptcy plan.
The liquidator of Three Arrows Capital (3AC) said in early July that it will attempt to claw back $220 million of “preferential payments” to BlockFi.
Also Read: FTX, 3AC, and SEC Oppose BlockFi’s Bankruptcy Proposal
