Compute North files second amended Chapter 11 plan

Chicago, Dec. 20 – Compute North LLC filed a second amended Chapter 11 plan, which was up for conditional approval regarding the adequacy of the related disclosure statement at a hearing on Dec. 20, according to multiple filings with the U.S. Bankruptcy Court for the Southern District of Texas.

Modifications

Additional language was included around definitions of exculpated parties, according to redline modifications.

The judge in the case, Marvin Isgur, preemptively filed an order regarding the second amended disclosure statement to state that if the exculpation provision in the second amended plan was intended to be a motion for reconsideration, then that reconsideration was denied.

Details around the conflict between Compute North and Bootstrap Energy LLC and Corpus Christi Energy Park was added, specifically Bootstrap Energy’s claim of over $4 million and the debtor’s disagreement with the claim.

The wind-down analysis includes updated numbers on the company’s bank balance, increased to $25.48 million, to reflect a $4 million sale to Foundry and a $3.1 million sale to U.S. Bitcoin. Another $1.7 million in asset sales is expected to be consummated before the end of the year.

The company, in a hearing on Dec. 20, will present a proposed timeline with a Jan. 26 voting deadline and a confirmation hearing in February.

Plan

As previously reported, the plan provides for full recovery to holders of allowed administrative expense claims, professional fee claims and priority tax claims.

Holders of secured claims will receive payment in full in cash, reinstatement of their claims, the interest in the collateral securing their claims or other treatment leaving the claims unimpaired.

Holders of other priority claims will receive payment in full in cash or other treatment leaving the claims unimpaired.

Holders of general unsecured claims will receive their pro rata share of the wind-down distributable cash remaining after satisfaction of senior claims.

Holders of parent GUC claims will receive their pro rata share of the wind-down distributable cash, if any, after payment senior classes.

Holders of intercompany claims will have their claims canceled with no distribution.

Intercompany interests will also be canceled.

Preferred equity interests and parent equity interests will be canceled, but holders will be able to receive their pro rata share of the wind-down distributable cash, if any, remaining after payment of senior claims.

Holders of general unsecured claims, parent GUC claims, preferred equity interests and parent equity interests are entitled to vote on the plan. The deadline is 5 p.m. ET on Jan. 4.

Compute North, an Eden Prairie, Minn.-based company, operates crypto-mining data centers. The company filed bankruptcy on Sept. 22 under Chapter 11 case number 22-90275.

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