The Bankrupt crypto lender receives some relief as the court has granted the approval to sell its crypto mining assets to help in its efforts to repay the creditors.
According to a document filed in the U.S. Bankruptcy Court District of New Jersey, the court said that BlockFi had presented a great case to authorize the sale of its assets. With the approval, the bidders for BlockFi’s crypto mining assets would have until February 20 to submit bids, with an auction to be held the following week.
BlockFi Expected to Sell Part of Crypto Assets After Bankruptcy Hearing
— Fortune Crypto ⚡️ (@fortune_btc) January 30, 2023
BlockFi Wants to Sell as Quickly as Possible
On January 9th, 2023, BlockFi filed in the court a presentation that provided all stakeholders with important historical backgrounds and context. In the presentation, the company noted that it had reached out to “106 domestic and international potential buyers for some or all of the business.”
BlockFi filed a motion seeking approval of bidding procedures on Monday, January 30th, at an omnibus hearing. The court has now approved the bidding procedures stating that the proposal was “fair, reasonable, and appropriate under the circumstances and designed to maximize the recovery on, and realizable value of the Debtors’ enterprise.”
According to the bidding procedure, all “Qualified Bids” must be received by the parties specified in the bidding procedures by February 20. To be eligible to participate in the auction, an acceptable Bidder must deliver a “written, irrevocable offer” to each of the “co-counsel to the debtors.”
If required, an auction will be held at Moelis & Company LLC in New York on February 28, 2022. The bids must be filed with the court by March 2nd, and the creditors have until March 16th to make objections to the sale bids of the assets to the qualified bidders.
A number of hearings will follow, and June 19, 2023, is the date for the hearing to consider confirmation of the sales plan.
BlockFi’s lawyer, Francis Petrie, stated in the court that the crypto lender had already received interest from many potential buyers and expected to come more once the bidding opens.
According to the Bloomberg report, BlockFi wants to sell its as quickly as possible to take advantage of the current market condition, which is currently enjoying good times following a dreadful last year.
The firm is reportedly selling off $160 million in loans backed by around 68,000 Bitcoin mining machines.
Robinhood 55.2M Shares
BlockFi is also attempting to get its hands on 55.2 million, worth around $577 million, Robinhood shares, which are the subject of a complex tussle between BlockFi, FTX, SBF, the US DOJ, and others. DOJ seized these shares in early January.
As reported, BlockFi filed for bankruptcy on November 28th, citing exposure to FTX and sued SBF’s investment company, asking for a turnover of its shares in Robinhood as collateral in line with an initial agreement.