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BlockFi receives approval of bid procedures; timeline adjusted
By Sarah Lizee
Olympia, Wash., Jan. 31 – BlockFi Inc. received approval of the bid procedures for its assets, according to an order filed Monday with the U.S. Bankruptcy Court for the District of New Jersey.
The timeline was adjusted so that the bid deadline was moved to noon ET on Feb. 20, pushed back from noon ET on Feb. 13. The auction was moved to Feb. 28 from Feb. 17. The sale hearing was pushed back to March 23 from March 13.
Additionally, the court set an April 3 deadline to file a disclosure statement, a May 8 disclosure statement hearing, and a June 19 confirmation hearing.
At the time of filing the bid procedures, over 35 potential counterparties had entered into confidentiality agreements with the debtors.
The company also received approval on Jan. 30 to choose a stalking horse bidder.
The U.S. trustee overseeing the case had objected to the stalking horse bid protections, but the court approved the company’s request for an up 3% breakup fee and an expense reimbursement.
However, if the company does enter into a stalking horse agreement, within two business days the debtors have to file a notice with the court. The notice has to provide the identity of the stalking horse bidder, the amount of the bid, and other relevant information, including a deadline to object to the stalking horse bidder designation or any bid protections.
If any objections are received, the court will hold a hearing as soon as possible.
As previously reported, BlockFi filed a plan that also includes a stand-alone restructuring, but because the company’s path forward remains unclear regarding issues with FTX’s bankruptcy and the impact on the cryptocurrency markets, BlockFi is considering other strategies, including the potential sales.
Based in Jersey City, N.J., BlockFi is a crypto financial services company. The company filed bankruptcy on Nov. 28 under Chapter 11 case number 22-19361.
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