Blockfi wants to liquidate a loan platform after unsuccessful sales attempts

Blockfi wants to liquidate a loan platform after unsuccessful sales attempts

The bankrot crypto loan Blockfi has requested that a court approved the sale of his loan business because he wants to generate funds to repay its creditors.

The step takes place after unsuccessful attempts to sell the loan platform to third parties. Blockfi announced that it did not receive any value -maximizing offers from potential buyers.

Blockfi wants to liquidate the lending business

The insolvent lender opened the restructuring plan according to Chapter 11 in a document that was submitted to the US bankruptcy court in Trenton, New Jersey on Friday. While the company intends to obtain votes from creditors and private customers, the plan still has to be approved by the court.

Blockfi, which submitted bankruptcy application in November, cited regulatory developments as a reason that it did not receive high quality offers from potential buyers.

"Therefore, the conclusion and conclusion of a transaction for the Blockfi platform would not lead to a practical and value-maximizing transaction in favor of the creditors of the debtors.

Accordingly, the debtors carry out the self -liquidation transaction in which the debtors distribute their assets to the creditors in accordance with the conditions of the plan and then handle their business, ”said lawyers who represent the insolvent company.

claims against the FTX Group to increase customer recovery

In addition, Blockfi has uncovered that the main reason for the reclaims for creditors and customers is the demands towards his commercial counterparties. The company includes the Bankrotte Krypto exchange FTX, its sister trade company Alameda Research, the competitive crypto hedge fund Three Arrows Capital (3AC), Sam Bankman-Frieds Holdinggesellschaft Emergent and the raw material broker Marex.

Remember that Blockfi received a revolving credit facility of $ 250 million from FTX last year during its liquidity bottleneck in the middle of the bear market. Together, FTX, Alameda, 3ac, Emergent and Marex Blockfi are $ 1 billion.

"And as described in the liquidation analysis ... the repayments of customers will increase or decrease (whereby the total expenses in the repayments of customers may be able to exceed $ 1 billion), depending on whether Blockfi can be successful in these legal disputes. Therefore, we believe that it is worth taking the time to follow them." “, Said the lender.

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