BlockFi was granted more time to file a bankruptcy exit strategy on Wednesday, some five months after the crypto lender went bust, BlockWorks.co reported. Joshua Sussberg, BlockFi’s attorney, said the company is exploring potential sale of its assets at a recent hearing. The firm is also looking for an external backer for a potential restructuring deal. The company now has until May 15 to file an exit plan, per court docs. Judge Michael Kaplan reportedly said it was worth extending the deadline to ease the way for a smooth continuation of the case. Sussberg described the duration of the extension as “modest,” and said the company would have a plan ready for assessment by unsecured creditors within two weeks. BlockFi filed for bankruptcy on Nov. 28, shortly after its bailout partner FTX. Under bankruptcy code, debtors are ideally meant to propose a chapter 11 plan in the first 120 days of the filing. This meant BlockFi should have presented a plan by March 27. But on March 21, the company filed a motion to extend the deadline for its chapter 11 plan by 90 days to June 26. “Given the size and complexity of these chapter 11 cases, much work remains,” BlockFi’s lawyers said. It’s estimated BlockFi altogether owes more than 100,000 creditors up to $10 billion.
