The bankruptcy chapter 11 reorganization of BlockFi, carries on with a steady pace. The firm has recently announced that their disclosure statement has received a conditional approval from the U.S. bankruptcy court of New Jersey. Mark Renzi of Berkeley Research Group, who functions as BlockFi’s Chief Restructuring Officer, stated with confidence that the acceptance of the disclosure, brings them closer to their prime goal. This goal being to speed-up the creditor recoveries.
Their encouraging plan, specifically aims at the quickly returning the crypto assets back to their respective clients. As such, if they manage to get the bankruptcy plan approved, their focus will be geared towards the recovery of funds from several defunct firms including Alameda, FTX, 3AC, Emergent, Marex, and Core Scientific.
However, not everyone seems to be pleased with BlockFi’s projected bankruptcy plan. FTX, Three Arrows Capital (3AC), and the Securities and Exchange Commission (SEC) have previously expressed their objections which was reportedly shared by CoinDesk. In their viewpoint, BlockFi’s bankruptcy plan is seen to unjustly drop-down their claims. They argue that the plan is deficient in procedural fairness and is exceedingly extensive in excusing BlockFi and its management from any legal responsibilities.
This is while there are disputed transactions of over a billion dollars in question. For instance, the liquidator of Three Arrows Capital has announced in early July, its intentions to recoup $220 million of alleged “preferential payments” to BlockFi. Hence, while the firm’s optimism about their plan seems promising, the reported objections are equally challenging their venture.
Finally, one must not forget that the determination of whether the reorganization unfolds as planned or not, will happen on September 11. This is the deadline set to vote on the proposed reorganization. For further updates, the crypto community eagerly waits for more information post-September 11 in order to better understand the future challenges and opportunities in relation to this case.
Source: Coindesk
