Compute North’s Chapter 11 plan effective as of March 31

By Sarah Lizee

Olympia, Wash., April 3 – Compute North LLC’s third amended Chapter 11 plan went into effect on Friday, according to a notice filed with the U.S. Bankruptcy Court for the Southern District of Texas.

The plan was confirmed on Feb. 16, as previously reported.

As background, the company received court approval to sell its mining assets to Foundry Digital, LLC for $5.17 million. The consideration also includes a credit bid for the full amount of Foundry Digital’s secured claim of $8.97 million.

The company also 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 CNCC general unsecured claims will receive nothing under the plan.

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.

Compute North, an Eden Prairie, Minn.-based company, operates crypto-mining data centers. The company filed bankruptcy on Sept. 22, 2022 under Chapter 11 case number 22-90275.

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