In a recently released statement, BlockFi has requested the public to disregard any information pertaining to a bankruptcy reorganization plan. The letter, issued in response to an order from the U.S. Bankruptcy Court for the District of New Jersey, explains that certain statements made by the crypto lender on May 13, 2023, through its website, Twitter feed, and court docket were published prematurely.
The letter advises individuals to refrain from considering these communications until their official authorization for publication and dissemination. This corrective action comes amidst ongoing tensions between BlockFi and an unsecured creditors committee, which was established subsequent to the crypto lender’s bankruptcy filing last November.
According to the letter, the committee, as well as “other parties,” express opposition towards the proposed reorganization plan. Furthermore, disagreements arise regarding specific aspects of the suggested scheme, particularly concerning the liquidation of BlockFi’s lending platform and the distribution of funds to creditors.
The letter further asserts the committee’s belief that the current management and professionals associated with BlockFi should not be granted control over the liquidation process and the subsequent allocation of funds to creditors. Consequently, the committee has requested modifications to the proposed plan.
CoinDesk has reported that a hearing regarding the reorganization plan is scheduled for June, providing an opportunity for further resolution and clarification on the matter.