Crypto lender BlockFi creditor group has approved the restructuring plan. Now loan users are waiting for payments. The company previously opened the request process to BlockFi Wallet users.
The new plan of the collapsed cryptocurrency company has been approved!
BlockFi’s restructuring plan has been approved by the company’s management and creditor committee. The company confirmed this in an email sent to users on September 30. In this email, BlockFi wrote:
We are pleased to announce the approval of our Chapter 11 Plan on Tuesday, September 26, 2023. We received overwhelming support for the Plan throughout the voting process, with over 90% approval across all voting classes.
The company said it was “working diligently” with members of the Unsecured Creditors Committee (UCC) to reach the agreement. BlockFi said the plan would allow FTX, Three Arrows Capital (3AC) and other parties to reclaim assets owed to it. This part of the restructuring process has been complicated by the fact that both FTX and 3AC recently objected to crypto lender BlockFi’s rescue plans. It appears that some of the objecting parties intend to file claims against BlockFi as well.
How will the new plan work?
BlockFi also said that the finalized plan will allow it to continue distributing cryptocurrency back to affected users. Approval of the plan will ensure that users receive the appropriate amount of funds. Thus, it will also allow the claim process to continue. The approval also means that BlockFi will likely emerge from bankruptcy and liquidate soon. This will happen once the plan goes into effect and foreign courts recognize that the plan has been approved by the U.S. bankruptcy court.
As you follow from Kriptokoin.com, BlockFi stopped withdrawals and filed for bankruptcy in November 2022. Reports at the time indicate that the firm was indebted to more than 100,000 creditors. The total debt is estimated to be between 1 billion and 10 billion dollars.
More users will soon have access to withdrawals
The latest development is also very important for another group of BlockFi users. Because the plan means they will be seeking compensation for the first time since the collapse of the crypto company. BlockFi said customers who hold funds in a BlockFi Interest Account (BIA) or Retail Loans will soon receive emails with withdrawal instructions. The company noted that this process will begin in the coming months. However, he did not give an exact start date.
The company added that after the first distribution group, further distributions will be made in amounts determined according to the outcome of FTX’s bankruptcy case. BlockFi also stated that BlockFi Wallet withdrawals are currently ongoing. It urged users to submit a request to receive their crypto funds while the withdrawal period remains open. The company opened withdrawals for wallet users on August 17.
Follow us on Twitter, Facebook and Instagram and join our Telegram and YouTube channels to be instantly informed about the latest developments!
58171
