A bankruptcy judge in New Jersey, United States, granted BlockFi additional time to submit a bankruptcy exit plan on April 19. BlockFi is a lender of digital assets.
The cryptocurrency lender reportedly received a 48-day extension until May 15 to register its exit strategy after filing for bankruptcy in November 2022.
BlockFi attorney Joshua Sussberg stated at a hearing on Wednesday that the cryptocurrency company is exploring the possibility of selling company assets or obtaining an outside investor to support a restructuring agreement.
According to the bankruptcy code, Chapter 11 debtors must propose a plan within 120 days of filing. Therefore, BlockFi had to present a plan by March 27.
However, on March 21, the corporation submitted a request to extend the Chapter 11 plan deadline by 90 days to June 26.
In defense of the request to extend the deadline, BlockFi’s attorneys stated, “much work remains” due to the scope and complexity of the Chapter 11 cases.
The company is estimated to owe over 100,000 creditors up to $10 billion. The bankruptcy judge assigned to the case, Judge Michael Kaplan, reportedly deemed it necessary to extend the deadline to ensure its continuation.