BlockFi creditors committee says case shouldn’t ‘languish’ any longer

By Sarah Lizee

Olympia, Wash., April 12 – BlockFi Inc.’s motion seeking a 90-day extension of its exclusive periods to file and solicit votes on a Chapter 11 plan drew an objection from the official committee of unsecured creditors, according to documents filed Wednesday with the U.S. Bankruptcy Court for the District of New Jersey.

The committee said the list of remaining things to do in the case is not long, and most of it could be entrusted to a post-confirmation liquidation trust controlled by customers and creditors.

“This bankruptcy is, in sum, at its end. Yet, the motion demands plan filing exclusivity all the way out to June 26 and solicitation exclusivity all the way out to Aug. 28,” the committee said in its objection.

“What on earth would the debtors even do with all that time?”

The committee noted that the company ceased operations months ago, and there is no prospect for rehabilitating the business.

The bulk of the company’s distributable value is liquid, either cash or cryptocurrency, the committee added.

“BlockFi’s creditors have one overriding goal: to get their money back, as much as possible, and as quickly as possible,” the committee said.

“Allowing this case to languish in bankruptcy assists neither.”

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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