BlockFi reported that the New Jersey bankruptcy court had provisionally accepted its disclosure statement, signalling further progress in the company’s reorganisation.
BlockFi’s Chief Restructuring Officer, Mark Renzi of Berkeley Research Group, stated in a statement that conditional approval of its Disclosure Statement brings the company one step closer to realising its ambition to maximise recoveries for its creditors. “We are confident that our Plan offers the best way to quickly return cryptocurrency to our clients, and we strongly encourage BlockFi’s clients to vote to accept it,” the statement reads.
Alameda, FTX, 3AC, Emergent, Marex, and Core Scientific are some other insolvent companies that the lender said it will concentrate its efforts on recovering money from if the bankruptcy plan is approved. But there are many who oppose BlockFi’s suggested bankruptcy approach.
With over a billion dollars’ worth of disputed transactions at issue, FTX, Three Arrows Capital (3AC), and the Securities and Exchange Commission (SEC) have objected to BlockFi’s proposed bankruptcy plan, claiming it unfairly downgrades their claims, lacks procedural fairness, and is overly broad in its release of BlockFi and its management from liability.
Early in July, Three Arrows Capital (3AC)’s liquidator said that it will make an effort to recover $220 million in “preferential payments” to BlockFi. The planned reorganisation is up for a vote until September 11th.