BlockFi, the cryptocurrency lending company, has obtained another extension from the court to delay the submission of its final reorganization plan until mid-May.
The delay was granted to allow BlockFi more time to finalize its restructuring plan as it considers selling off its assets and is actively seeking an outside sponsor to support the agreement.
According to Joshua Sussberg, BlockFi’s lawyer, the company will be ready to present a bankruptcy exit plan to the court for approval by May 15th.
Bankruptcy Judge Michael Kaplan agreed with the defense, citing his intention to avoid wasting resources negotiating various draft applications as he expects the final version of the plan to face legal and regulatory difficulties.
This is not the first time that BlockFi has requested a delay in approval of its restructuring plan since it filed for bankruptcy in November of last year.
The company had previously secured court approval for a 90-day extension, and in each case, it faced opposition from unsecured creditors demanding immediate action.
However, in February, BlockFi received approval from a New Jersey County court to sell mining equipment to recover some of the funds for affected creditors.