Compute North’s Plan To Sell Remaining Assets Is Approved By The Court
Key Points:
- The final restructuring plan for Compute North, a provider of crypto mining services, was accepted by a federal judge.
- The mining company has completed 13 asset transactions, four of which were significant, paying off its entire secured debt of $250 million.
- In order to bring these businesses on board with the strategy and prevent further litigation, Compute North has reached settlements with a number of their debtors.
A judge of the U.S. Bankruptcy Court for the Southern District of Texas has authorized the liquidation plan of bankrupt hosting company Compute North.
In September, Compute North sought bankruptcy protection after discovering that it couldn’t pay its debts. According to Compute North’s counsel during a hearing on Thursday, the mining company has completed 13 asset transactions, four of which were significant, which have paid all of its secured debt, which was $250 million.
Although the majority of the company’s assets have already been sold in the last several months, some are still available, and the profits will now go mostly to unsecured creditors.
In order to bring these companies on board with the strategy and prevent further litigation, Compute North has reached settlements with a number of their debtors. Among them is market leader Marathon Digital Holdings, which on February 9 consented to a general unsecured claim in the amount of $40 million in exchange for embracing the plan. To make the scheme work, Compute North had to reach settlements with an additional 11 companies over very small claims.
The company also sold US Bitcoin Corp, which recently announced a merger with miner Hut 8, its 50% stake in a 280-megawatt wind power project in Texas. Foundry, Crusoe Energy Systems, and Generate Capital were some of the additional customers.
Judge Marvin Isgur of the Southern District of Texas stated: “Nobody was going to like what I was getting ready to do,” when Compute North’s counsel disclosed a last-minute statement that will enable the mining hosting company to proceed with its reorganization plan.
Decimal Digital, Corpus Christi Energy Park, and BitNile are the three agreements that came at the last minute.
The final list and categorization of creditors’ claims are approved by the plan, and a litigation trust is established to continue pursuing monies from ongoing lawsuits. This, in turn, will determine how the remaining claimants will share in the residual assets of Compute North.
The proposal provides that the remaining unsecured creditors shall hold the remaining property, including transformers and containers, and shall distribute the same among the claimants. There will be created lawsuit trust to end continuing legal processes.
Core Scientific filed for bankruptcy in December but has effectively taken the opposite approach, getting more funding to keep things running.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Harold
Coincu News
Author
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Compute North’s Plan To Sell Remaining Assets Is Approved By The Court
Key Points:
- The final restructuring plan for Compute North, a provider of crypto mining services, was accepted by a federal judge.
- The mining company has completed 13 asset transactions, four of which were significant, paying off its entire secured debt of $250 million.
- In order to bring these businesses on board with the strategy and prevent further litigation, Compute North has reached settlements with a number of their debtors.
A judge of the U.S. Bankruptcy Court for the Southern District of Texas has authorized the liquidation plan of bankrupt hosting company Compute North.
In September, Compute North sought bankruptcy protection after discovering that it couldn’t pay its debts. According to Compute North’s counsel during a hearing on Thursday, the mining company has completed 13 asset transactions, four of which were significant, which have paid all of its secured debt, which was $250 million.
Although the majority of the company’s assets have already been sold in the last several months, some are still available, and the profits will now go mostly to unsecured creditors.
In order to bring these companies on board with the strategy and prevent further litigation, Compute North has reached settlements with a number of their debtors. Among them is market leader Marathon Digital Holdings, which on February 9 consented to a general unsecured claim in the amount of $40 million in exchange for embracing the plan. To make the scheme work, Compute North had to reach settlements with an additional 11 companies over very small claims.
The company also sold US Bitcoin Corp, which recently announced a merger with miner Hut 8, its 50% stake in a 280-megawatt wind power project in Texas. Foundry, Crusoe Energy Systems, and Generate Capital were some of the additional customers.
Judge Marvin Isgur of the Southern District of Texas stated: “Nobody was going to like what I was getting ready to do,” when Compute North’s counsel disclosed a last-minute statement that will enable the mining hosting company to proceed with its reorganization plan.
Decimal Digital, Corpus Christi Energy Park, and BitNile are the three agreements that came at the last minute.
The final list and categorization of creditors’ claims are approved by the plan, and a litigation trust is established to continue pursuing monies from ongoing lawsuits. This, in turn, will determine how the remaining claimants will share in the residual assets of Compute North.
The proposal provides that the remaining unsecured creditors shall hold the remaining property, including transformers and containers, and shall distribute the same among the claimants. There will be created lawsuit trust to end continuing legal processes.
Core Scientific filed for bankruptcy in December but has effectively taken the opposite approach, getting more funding to keep things running.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Harold
Coincu News
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