The bankrupt cryptocurrency lender BlockFi has received court approval to sell its cryptocurrency mining equipment as part of ongoing efforts to pay off its creditors.
A court order filed on January 30 in the United States Bankruptcy Court for the District of New Jersey granted approval for BlockFi to sell the assets.; he said doing so was “fair, reasonable and appropriate under the circumstances.”
The court recognized that the sale of the assets is designed to maximize the recovery and “realizable value” of the company.
Now that the court has given BlockFi the green light, more offers are expected for the crypto mining assets. from the cryptocurrency lender.
The document stated that “all qualified offers” had to be sent to the parties specified in the bidding procedures before the February 20 deadline.
Offers must be filed with the court by March 2 and creditor representatives have until March 16 to oppose the sale of the assets to qualified bidders.
To participate in the bidding process, potential bidders must submit a written proposal to each of the “co-counsels of the debtors.”
The proposal must include the proposed purchase price, as well as the specific assets the potential bidder is interested in acquiring and how it will finance the assets.
According to a Bloomberg report on January 31, BlockFi’s tight deadline is an effort to get deals as soon as possible to take full advantage of current market conditions, which have seen most cryptocurrencies rally after months of sideways prices.
The report says that BlockFi’s lawyer, Francis Petrie, has told the court that the company has already received interest from bidders for several assets, and expects more to come.
On January 24, it was reported that BlockFi had been selling $160 million in loans backed by approximately 68,000 bitcoin (BTC) mining machines as part of bankruptcy proceedings.
BlockFi began the process of selling the loans last year, and some have already defaulted given cryptocurrency market conditions.
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