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Tonkon Torp Successfully Represents Ad Hoc Committee of Loan Claimants in BlockFi Chapter 11 Cases
January 23, 2024
PORTLAND, Ore. (January 23, 2024) Tonkon Torp is pleased to announce the successful conclusion of its representation of the Ad Hoc Committee of Loan Account Holders in the chapter 11 bankruptcy cases of BlockFi, Inc. and its affiliates in the Bankruptcy Court for the District of New Jersey. The Tonkon Torp Bankruptcy & Reorganization team was led by partner Danny Newman, who was assisted by partners Michael Fletcher and Tim Conway. Danny and the team represented the Ad Hoc Committee’s approximately 30 individuals with eight-figures in claims against BlockFi; the Committee itself represented the interests of thousands of creditors with claims of approximately $1 billion against BlockFi.
Tonkon Torp effectively addressed numerous issues critical to the Ad Hoc Committee with the Debtors and the Official Committee of Unsecured Creditors, including ensuring that BlockFi’s counterclaims against the Loan Account Holders were setoff against the Loan Account Holders’ own claims. The setoff issue was memorialized in BlockFi’s plan of reorganization, saving Loan Account Holders hundreds of millions of dollars – compared to the Debtors’ original draft plan – and years of potential litigation defense costs. Tonkon was very efficient with client resources, achieving many of the Ad Hoc Committee’s goals while spending pennies in comparison to other key stakeholders in BlockFi’s cases. As one of the Committee’s co-chairs put it, “We received great value from [Danny’s efforts}, far greater than our actual spend!” Another Committee leader emphasized that Tonkon Torp’s “advocacy gave our modest circle greater impact.”
Danny Newman’s experience includes working on some of the largest chapter 11 cases in the Pacific Northwest and even the world. He has represented fiduciaries, debtors, and creditors of all kinds in state and federal court litigation, receiverships, and out-of-court workouts.
About Tonkon Torp
Tonkon Torp LLP is a leading business and litigation law firm serving public companies, substantial private enterprises, entrepreneurial businesses, and individuals throughout the Northwest. For more information, visit tonkon.com.