BlockFithe failed crypto lender, won court approval to sell its crypto mining equipment as part of efforts to pay off its creditors.
A court order filed Jan. 30 in the United States Bankruptcy Court for the District of New Jersey granted approval for BlockFi to sell its assets, stating that such a transaction is “fair, reasonable and appropriate in the circumstances”.
The court acknowledged that the sale of the assets was designed to maximize recovery and “realizable value” of the company.
With the court’s green light for BlockFi, more offers for the crypto lender’s assets are expected.
The document states that “all eligible offers” must be sent to the parties specified in the tender procedures by the February 20 deadline.
The offers must be filed with the court by March 2 and the creditors’ representatives have until March 16 to oppose the sale assets to qualified bidders.
To participate in the bidding process, prospective bidders must deliver a written proposal to each of the “debtor co-advisers”.
The proposal must include the proposed purchase price, the specific assets that the potential bidder is interested in acquiring and the methods of financing them.
According to a Bloomberg report released on Jan. 31, BlockFi’s tight expiration is an attempt to get deals as quickly as possible to make the most of current market conditions, which are characterized by a recovery in most cryptocurrencies after months of sideways moves. prices.
According to the report, BlockFi attorney Francis Petrie told the court that the company has already received offers from bidders and expects more to come.
On Jan. 24, it was reported that BlockFi sold $160 million in loans secured by approximately 68,000 Bitcoin mining machines (BTC) under bankruptcy proceedings.
BlockFi started the process of selling loans last year, and some of them have already defaulted due to crypto market conditions.
