BlockFi is looking for a new way out after a failed sell attempt.
After BlockFi’s failed sale, the company is looking for an exit. BlockFi has sought permission from a bankruptcy court to begin liquidating its lending platform.
BlockFi Requests Additional Time From Court
BlockFi plans to liquidate its lending platform and distribute funds to creditors, according to a bankruptcy court filing.
According to court documents, the anticipated move asked the court for additional time after a failed effort to raise funds to repay creditors by selling the BlockFi platform. Lawyers for the bankrupt crypto lender wrote that “there may be a lack of meaningful value to be gained from a sale, given, among other things, recent regulatory developments.”
BlockFi’s lawyers made the following statements in their statements:
“Concluding and completing a transaction for the BlockFi Platform will not result in a value-maximizing transaction that is in the best interest of borrowers’ creditors. Accordingly, the debtors continue the self-liquidating process, in which they will distribute their assets to creditors in accordance with the terms of the plan, and then their business will be liquidated.”
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