Compute North files Chapter 11 plan, seeks Jan. 9 combined hearing

By Sarah Lizee

Olympia, Wash., Nov. 28 – Compute North LLC filed a Chapter 11 plan of liquidation and related disclosure statement with the U.S. Bankruptcy Court for the Southern District of Texas on Wednesday.

As previously reported, the company received court approval last week to sell its mining assets to Foundry Digital, LLC for $5.17 million, with $4 million due at closing and $1.17 million due at a separate closing for the assets located in Minden, Neb. The consideration also includes a credit bid for the full amount of Foundry Digital’s secured claim of $8.97 million.

Earlier in the month, the company got court approval to sell some of its cloud-native contrail networking (CN2) container assets to Crusoe Energy Systems, LLC for $1.55 million, or about $140,636.36 per container.

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.

The company has asked for a Jan. 9 combined hearing on approval of the disclosure statement and confirmation of the plan.

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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