• BlockFi, a crypto lender, has received conditional approval from the U.S Bankruptcy Court of New Jersey for its disclosure statement.
• The plan would help the bankrupt firm resolve all its cases and also allow it to refund clients.
• The firm’s creditors must vote on the Chapter 11 Plan before the Sept. 11 deadline in order to maximize recoveries for creditors.
BlockFi Gets Conditional Approval for Disclosure Statement
BlockFi, a crypto lender, has received conditional approval from the U.S Bankruptcy Court of New Jersey for its disclosure statement. The plan would help the bankrupt firm resolve all its cases and also allow it to refund clients. Mark Renzi, BlockFi’s chief restructuring officer said that this conditional approval moves the firm closer to maximizing recoveries for creditors.
Vote on Chapter 11 Plan
In order to maximize recoveries, BlockFi’s creditors must vote on their Chapter 11 Plan before the Sept. 11 deadline. The outcome of this vote will decide whether or not they can move forward with their plans and begin refunding clients.
Ensure Maximum Recoveries
Renzi is confident that their Plan provides a path that could expedite returning crypto back to their customers while also ensuring maximum recoveries for all stakeholders involved in this process.
Objections Filed by Creditors
Creditors have filed objections against BlockFi claiming that they are not receiving enough compensation or that they were unaware of what was happening during this process or other related matters such as voting rights violations and unfair treatment among others. However, these objections have not been accepted yet by court which means BlockFi can continue working towards resolving all cases and repaying customers while maximizing recoveries at same time if approved by court after voting process is completed successfully within stipulated timeline set by them i..e Sept 11th 2020 .
Conclusion
At present no objections have been accepted yet so Blockfi’s recovery plan is still in motion with potential to yield good results if accepted finally post voting process is successfully completed according to timeline defined previously by them i..e Sept 11th 2020 . This will ensure maximum recovery amount being returned back to stakeholders involved in bankruptcy proceedings as well as timely repayments being made to customers affected directly due to this incident .
