Bitcoin mining pool operator Poolin Technology and two affiliated companies have filed for Chapter 11 bankruptcy protection in New Jersey, according to court records that place Poolin’s estimated liabilities between $100 million and $500 million.
The filing shows estimated assets of $1 million to $10 million against the much larger liability range, and says the company has between 10,001 and 25,000 creditors. The petition also states that funds are expected to be available for distribution to unsecured creditors.
Bankruptcy filing outlines size of the case
Poolin and its affiliates entered Chapter 11 in a case that appears aimed at managing a large creditor pool while attempting to preserve value through court supervision. Based on the petition, the debtor count is significant, with more than 10,000 and up to 25,000 creditors listed.
The filings identify a sharp gap between the company’s estimated assets and liabilities. Poolin lists assets in the range of $1 million to $10 million, while estimated liabilities are shown at $100 million to $500 million.
Debtors say Chapter 11 will support an orderly sale
The debtors told the court that the bankruptcy process is intended to facilitate an orderly sale of assets for the benefit of creditors and other interested parties. In their description, Chapter 11 is being used as the framework to market and sell substantially all of the debtors’ property.
The bankruptcy court approved bidding procedures covering substantially all assets of the debtors. The order also authorizes Poolin and its affiliates to name a stalking horse bidder, and sets rules for any auction, the treatment of certain contracts and leases, and a later hearing on the proposed sale.
Key sale dates have been scheduled for September
The court-approved timetable sets Sept. 8 as the deadline for qualified bids. If the estate receives competing qualified offers, an auction is scheduled for Sept. 10.
A hearing on the proposed asset sale is set for Sept. 18 at 11 a.m. Eastern Time before Judge O’Hagan in Trenton. Those dates mark the next major milestones in the restructuring process as the debtors seek court approval for a transaction.
Affiliates’ operations and property are part of the process
The bidding process covers assets held by Poolin and its two U.S. affiliates. Court filings say Lonestar Dream had substantially completed the wind-down of operations at its mining sites by the time of the bankruptcy filing.
That wind-down followed the discontinuation of services for customer Elektron Energy and the start of removing Elektron equipment from the facilities. The filing says a limited workforce remained in place to protect the mining sites and equipment, support the sale effort and help administer the Chapter 11 cases.
The other affiliate, Lonestar Taproot, is described as owning equipment and other property tied to the mining facilities, including power-related assets, buildings, improvements and substation infrastructure.
Creditors’ meeting and case administration come next
Poolin’s creditors are scheduled to meet on Aug. 28 at 9 a.m. Eastern Time in a remote Section 341 meeting. Creditors who want to submit proofs of claim may send forms to the Poolin Claims Processing Center run by Verita Global in El Segundo, California, with the case page stating that claims can be delivered by U.S. mail or another hand-delivery system.
Archer & Greiner, P.C. is representing the debtors in the Chapter 11 proceedings. The court also approved the retention of DuFrayne LLC as crisis manager and Michael DuFrayne as chief restructuring officer, while Verita Global was authorized to act as administrative adviser.
Source: crypto.news