BlockFi’s Chapter 11 Solicitation Period: Creditors Can Vote on Bankruptcy Plan
BlockFi has announced the start of its Chapter 11 solicitation period, allowing creditors to vote on the bankruptcy plan. Here are the key points:
1. Solicitation period begins: BlockFi has initiated the solicitation period for creditors under Chapter 11. During this time, creditors have the opportunity to vote on the bankruptcy plan.
2. Information sent via email: All eligible creditors will receive the solicitation package via email, which contains details about their eligibility and instructions for completing the ballot.
3. Deadline for voting: Creditors can submit their ballots until September 11, 2023.
4. Bankruptcy aftermath: Once the solicitation period ends and the plan is approved, Chapter 11 will conclude, and customers can expect to receive their refunds.
5. Background on BlockFi’s bankruptcy: BlockFi filed for bankruptcy after facing a liquidity crisis due to their exposure to the FTX collapse. However, the creditors’ committee believes that BlockFi’s poor management was the main reason behind the bankruptcy.
Hot Take
BlockFi’s Chapter 11 solicitation period marks an important step in the bankruptcy process, allowing creditors to have a say in the company’s future. It highlights the need for transparent communication and accountability in the crypto industry to ensure the trust and confidence of its stakeholders.
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