In an earlier post we discussed the bankruptcy filing of Compute North Holdings, Inc., a bitcoin miner felled by high electricity costs and falling cryptocurrency prices (see here). It may be followed shortly by another miner, Core Scientific, Inc., which announced on October 26, 2022 that it has similarly been severely impacted by rising electricity costs and the price of bitcoin.
The purchase and sale of assets by a debtor is governed by Section 363 of the Bankruptcy Code. So-called “363 sales” are typically attractive from a buyer’s perspective (and may be a primary reason for a bankruptcy filing). Perhaps the most important benefit afforded to buyers in 363 sales is the ability to acquire assets “free and clear” of claims and interests of third parties.
On September 22, 2022, Compute North Holdings, Inc. and certain affiliates filed bankruptcy in the Southern District of Texas in Houston. The company describes itself as “a leader in data centers, focused on delivering sustainable, cost-effective infrastructure for customers in the blockchain, cryptocurrency mining and distributed computing space.” SeeDeclaration of Harold Coulby, Chief Financial Officerand Treasurer of the Debtors (Doc. 22).
The Act n 16/2022, dated September 5, on the reform of the Recast Insolvency Act, published on September 6, 2022, brings deep and major changes to the existing legislation.
The amendment will come into force on September 26, 2022, twenty days after its publication, and affect both proceedings commencing after entry into force of the legislation and a few parts of proceedings that had commenced earlier.
The differences between the original bill and the approved insolvency reform are shown in the compared version available here.
El 6 de septiembre se ha publicado en el Boletn Oficial del Estado la Ley 16/2022, de 5 de septiembre, de reforma del Texto Refundido de la Ley Concursal, que trae consigo importantes y profundas modificaciones en la norma vigente.
La modificacin entrar en vigor el 26 de septiembre de 2022, a los veinte das desde su publicacin, y afectar tanto a los procedimientos que se inicien tras la entrada en vigor de la norma como a algunas partes de aquellos que se hubieran abierto con anterioridad.
In the short time since we last provided an update regarding the bankruptcy cases of Celsius Networks LLC and its affiliates (here), there have been a number of material developments to report.
There is much to report since our last update on Voyager Digital’s bankruptcy case discussed here.
Now that their bankruptcy filing is a few weeks behind us, we provide below an update on certain matters of interest in the case of Celsius Networks and its affiliates. Of course, it’s still very early in the bankruptcy case — and in cryptocurrency cases in general — but we have already heard from many distressed opportunity investors that are interested in identifying investment opportunities. Given the novel legal and difficult valuation issues involved, it will be important to keep a close eye on the developments in these proceedings.
Los juzgados de primera instancia conocerán, entre otras, de las acciones colectivas previstas en la legislación sobre condiciones generales de la contratación y en la legislación sobre defensa de consumidores y usuarios.
In a matter of first impression relating to an important bankruptcy claims administration issue, Judge Sean H. Lane of the United States Bankruptcy Court for the Southern District of New York, recently denied the ability of a court appointed claims agent to sell and profit from providing direct access to publicly available claims register information. The unsuccessful purchaser of such information was XClaim Inc. (“Xclaim”), a relatively new venture that is seeking to develop a web-based claims trading platform.