American court hearing recordings and interviews - BlockFills crypto bankruptcy - 3/30/2026 bankruptcy hearing in Delaware (In re Reliz Technology Group Holdings)

Episode Date: March 30, 2026

The scheduling in the BlockFills chapter 11 bankruptcy case, pending in Delaware, is changing due to objections filed in the case, which the court concludes require hearing, and unfortunately there was a death in the family of the bankruptcy judge, and his honor needs to travel relatedly.

Good afternoon, counsel. This is Judge Horan. We're on the record in Realized Technology, case 26-10371. I want to start out by acknowledging that this schedule change puts everybody in a tougher position than they would have been. Frankly, I had a death in the family and I've got to travel today. I know that the intramorder was going to expire, so I thought it important that I not leave before doing this hearing. So I apologize particularly to those who might not have read the ECF notifications until this morning and saw that there was a change in the schedule. So with that, I'll stop apologizing and turn it over to Denner's. Good afternoon. Darren Asman from McDermott, proposed counsel to the getters.

I guess my question for your honor is how you want to proceed with today as a status conference. I guess I assumed that you maybe wanted to get understanding from the parties about whether we could come to an agreement on a further initial interim order to accommodate the court for a further second day, a second interim hearing. Is that how your honor would like to proceed? because I think there's a way to easily do that. Yeah, I think that's right. The landscape is, it's somewhat altered because of the objections that were filed by 154-8199, Alberta, and the Ward Trust. And I'm hopeful that both parties are represented at this hearing this afternoon. but it certainly bears on the relief that was granted.

So the, look, we're here on an interim hearing, so what my goal is is to address it insofar as I can to get a further order approved that prevents immediate and irreparable harm to the debtors, but we're going to have to have a more, well, we're going to have to have a full hearing on the objections that were raised. Well, let me make a proposal. And then like the court and other parties, know what would work for the getters,

and then I guess we can hear from the objecting parties, if that makes sense, Your Honor. Yeah, please, Mr. Asman. Sure. So, as you noted, the order expires on its own terms tomorrow. So obviously, the first thing we need is whenever the second and second and second. from hearing is scheduled, the current order or a revised form of that would be to carry through to that hearing. And I guess it would be good to hear from your honor at some point what dates work for your honor. We can certainly accommodate pretty much anything.

And then the only additional item is we need to increase the cap. You'll remember that the interim cash collateral order as well as the second interim, which I guess I should note that Mr. Wilford's client has already consented to entry of that. But you're right. There is an objection from another party now. that'll need to be addressed. But I'm sure that Mr. Wilford and I can agree on a slightly increased amount for what I'll call the revised first interim period. I think what my folks are telling me is that as long as we had a second interim order hearing before the end of this week, we would be comfortable with increasing the cap to $2.5 million.

That would get us through April 3rd. If there's other dates that the court or other parties want to think about, I kind of have different numbers. depending on what it is, is obviously a question built-in. It's not exact, but I just wanted to throw that out there for your honor to understand in front of other parties. But we would be fine with tearing the first interim order with a slightly increased cap to 2.5 through the end of this week, as well as obviously pushing out the expiration of the first interim order. Okay, okay. I appreciate that. Let me hear from Mr. Geller.

Mr. Geller, good morning, or good afternoon, I should say. Ronald Gellard for 1548199 in Alberta, also here with my co-counsel, Thomas Patash, and Alyssa Kyriapos. Your Honor, we are certainly not trying to be in any way preventing the debtor from having used to cash collateral. Obviously, our objection was limited for that purpose, and we're amenable certainly to a further interim order. One thought we had was to take an interim order through to the 16th when we have a bunch of other things teed up and have it all hurt at the same time. And I'm sure we could work with the debtors in terms of making sure that that gets to the point where they have enough cash available to get to that hurdle. Okay. Fiscally responsible, financial geniuses, monetary magicians.

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Okay, Mr. Hesman. How about the word trust? Your Honor. Mr. Sulek. I'm just seeing, oh, good, Ethan, you were able to get on. I was just about to say that Mr. Sillick had emailed me saying he didn't have the video link, but I'm glad you were able to get on. Yeah, and again, I apologize Mr. Sulek for the little notice, which was entirely my doing.

So I apologize for that. Your Honor, the Richard Warb Trust is also amenable to the proposal. Okay, so let me just clarify with Mr. Shulik and Mr. Gellert. What you're proposing is that enter a second interim order on the terms set forth in the initial order with a change in the cap to $2.5 million? Yes, that's correct, Your Honor. Okay. That's our understanding as well. Yes.

Your Honor. Mr. Your Honor. Mr. Your Honor, good afternoon. Yes, Your Honor, good afternoon. Keith Walker from Whiteon case on behalf of Celsius. Your Honor is aware, and I think as Mr. Asman,

to, we put in a form of second interim order that was proposed and agreed that, in fact, had an expiration of the 16th. There's obviously a lot of volatility around crypto. Celsius is a secured creditor is secured by not only cryptocurrency, but also assets that are in effect dependent on cryptocurrency for value. And so we've been balancing with the debtors the duration of this interim period versus the protection. So in the proposed interim, there was an increase of the usage cap effectively to $5 million. But then there was also a series of protections, including a trigger for a potential emergency hearing, given that if there was a correct collapse in the value of crypto,

obviously the alleged cushion would reduce substantially. There were a number of other elements in that draft order, which are primarily around information and around segregation of sales of any non-crypto assets, in a segregated account with respect to proceeds. And from our perspective, the ideal scenario would be that those protections would come into place now as we had sort of had negotiated those as a package with the debtors in exchange for use through the 16th. We don't believe that those elements are prejudicial to any of the objectors, and so to

the extent that there's a proposal, we'll go to the 16th. We would like the second inner order to be the form rather than the existing form, subject to, of course, any agreement of the debtors, if they want to lower the $5 million, obviously we don't have an objection to that. Yeah, Your Honor, I want to clarify the $2.5 million that I mentioned would get us to the end of this week. I think what Mr. Gallard and Mr. Silik were indicating, and they'll correct me if I'm wrong,

is that they are actually okay with the form of second interim order that's been agreed to with Mr. Wilford and I and our clients that carries us through the 16th. So we should put aside the $2.5 million that I threw out. I agree with Mr. Wolfford. We should just go forward with the order that's on file, again, subject to Mr. Geller and Mr. Sulla saying there's an issue with that. But I thought that that's what they were saying.

Let me start, Mr. Geller. Are you agreeing to the form of second interim order? You know, I can't say that I've scoured that one. Yeah, it was only filed yesterday. Yeah. Yeah, I was going to say, I just, certainly want them to have the availability of cash. I just would want to look at the additional protections that they're referencing.

Yeah. Mr. Seulik. Our goal is just to get to the 16th and to have our rights preserved without further prejudice to our client. I think we'd prefer the opportunity to also look at the proposed form of order and then perhaps coordinate with the debtors to see if we're amenable to that after reviewing. Okay. Your Honor, also if I may. Yeah, Ms. Van Lairer. Good afternoon.

Welcome. Yes. Thank you. Good afternoon. Jane Van Lair, Cleary, Gottlieb, St. and Hamilton on behalf of the out-hawk group of Blockville's customers. I just wanted to chat in. We don't have an objection to the cash collateral order, but it was filed yesterday, and my clients are extremely concerned about the expenses of the estate. And so we would like similarly an opportunity to review the order,

review the amounts that are being proposed. And also there's a provision in. in the order that says the amounts can be exceeded with Celsius's consent. And we certainly want to add that our own, the ad hoc group as another party that should similarly get consent in the event that the debtors will exceed the amount. Yeah, and look, I hear that. And in addition, I know that the Office of the United States trustee has appointed a committee who I suspect has not yet retained counsel.

Here's what I think we ought to do. I would like the parties to discuss offline, if possible, and see where you can get. If the, look, if the ad hoc group in Alberta and the Ward Trust and Celsius are all on board on a form of order that could get us through to the 16th, which is when the parties will be here again. Well, actually, I'll tell you what, I can look at other dates if we need that. But the point being, if you can agree on a former border submitted under certification of counsel, but if you can't get there, then what I would be willing to approve would be a

a further form of order substantially in the form of the original interim order. It can have an adjustment to the cap to reflect the budgetary needs of the debtors moving ahead. But on a substantive basis,

I think, frankly, there's a lot in there that the parties probably want to have a chance not only to review, but to discuss with their clients and get proper direction before agreeing to it. And again, I just want to prevent immediate and irreparable harm to the debtors and not do anything that's going to inappropriately affect the rights of the objecting parties without an opportunity for a full adjudication of their objections. Your Honor, that all makes sense,

and I have the feeling we'll be able to get all the parties on board with a form of second interim order that takes us through the 16th. But just as a procedural matter, what is Your Honor's availability if an event we're not able to get a deal on that? when is your honor, when do you need me to upload a second revised order that's consistent with the first one other than an increase to the cap to make sure that we don't break the expiration of the first interim order tomorrow? That's my main concern. Okay. My expectation is that today I will have pretty much continuous internet access, you know, for the rest of today. tomorrow it's going to be a lot more difficult, but we will keep an eye out.

And I know my staff will do their best to get a hold of me. We'll take care of it. The order won't lapse without a new order in place. I appreciate that. Thank you, Your Honor. Sure, sure, thank. Okay. Anything else?

Not from the debtors, Your Honor. Okay, and Mr. Asman, I take it that you have not heard from a firm that's been retained by the committee at this point. No, my understanding is that the committee is holding pitches for legal counsel today, so I suspect we'll know who we're dealing with by the end of today for tomorrow, hopefully. Okay, fantastic. Okay, well, look, I'll leave you to it, and we will look at. for a certification of counsel or, you know, if you can't get there and you need judicial intervention, maybe I can get a colleague to help out, but hopefully you can get there. We will try to avoid the need to have to do that.

Okay. I do appreciate that. All right. Well, thank you all for being so accommodating to my schedule. I genuinely do appreciate it. and we'll look out for the certification of counsel. Okay. Okay, thanks.