Bankrupt Compute North Permitted by Court to Operate Key Functions
Godfrey Benjamin Sep 27, 2022 08:39
Compute North, a cryptocurrency mining startup that filed for bankruptcy last week has been granted a number of allowances to continue some aspects of its business operations
Compute North, a cryptocurrency mining startup that filed for bankruptcy last week has been granted a number of permissions to continue some aspects of its business operations.
According to Judge Marvin Isgur of the U.S. Bankruptcy Court for the Southern District of Texas (Houston), Compute North can maintain certain operations, including the payment of its insurance, the maintenance of its bank accounts as well as receiving the greenlight for intercompany interactions.
The latest approval granted by Judge Isgur will keep the firm afloat at this time when it is undergoing its biggest financial turmoil in recent times.
With the grace period granted by the court, the mining firm can request payment on its bank checks, provided they are signed prior to the declaration of bankruptcy. The judge also approved an earlier revised provision that will see Compute North draw up a list of its top 30 creditors.
The embattled company has also been cleared to redact the addresses of its core stakeholders, including employees, Directors, and Contractors. In all of this leniency, the latest filing has set a key date for the case, giving regulators ample time to finish the job.
Compute North had to file for bankruptcy with limited funds to pay unsecured creditors after the administrative expenses were paid out, granting it another avenue to explore forward-thinking strategies to balance out its business.
According to Kristyan Mjolsnes, head of marketing and sustainability at Compute North, the company is exploring "the opportunity to stabilize its business and implement a comprehensive restructuring process," adding that its filing for bankruptcy "..will enable us to continue servicing our customers and partners and make the necessary investments to achieve our strategic objectives."
Beyond Compute North, other crypto-focused firms, particularly exchanges and lending platforms, have also gone bankrupt. One of the firms, CoinFlex is currently about to close a poll in which the majority of its creditors are approving a restructuring approach in which 65% of equity will be vested in them.
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