BlockFi withdrew its restructuring plan statements following the bankruptcy court ruling.
In a public letter, BlockFi said that statements about its bankruptcy restructuring plan should be disregarded. The development illustrates the ongoing friction between BlockFi and its unsecured creditors.
BlockFi Withdraws Plans for Restructuring After Bankruptcy Court Announces Decision
BlockFi recently filed its restructuring plan in court. The company said in a public letter that statements about its bankruptcy restructuring plan should be disregarded.
The corrective letter, issued following an order issued by the US District of New Jersey Bankruptcy Court, stated that the crypto lender “sent some statements prematurely to the court, its website, and Twitter account on May 13, 2023.”
The statements in the letter were as follows:
“We urge each of you to disregard these communications until such statements are permitted to be published and disseminated.”
Court documents have revealed the ongoing dispute between BlockFi and a committee of unsecured creditors formed after the crypto lender filed for bankruptcy last November.
