Giga Watt is a US-based Bitcoin mining solutions company. However, this is likely to end in the foreseeable future, because Giga Watt has filed for bankruptcy. The reason for this is that the company can no longer service its millions of dollars in debt with the funds available.
The Bitcoin Miner Giga Watt filing for bankruptcy is based on Section 11 of US bankruptcy law. The application was filed with the competent bankruptcy court in the eastern part of Washington. The court records show that Giga Watt still owes nearly $ 7 million to its 20 largest creditors. It can also be seen from the papers that Giga Watt has assets worth less than $ 50,000. The debt, on the other hand, ranges from $ 10 million to $ 50 million.
The minutes of a Giga Watts shareholder meeting say:
“The company is insolvent and not able to service its debts on time. The company and its creditor would be best served by a reorganization of the company in accordance with Section 11 of the Bankruptcy Code. “
The meeting had convened Andrey Kuzenny, who, as the director himself, had more than 10 percent holds the shares of the mining company.
What is an application under Section 11?
The objective of an application under Section 11 of US Bankruptcy Law is, in principle, a reorganization of financial obligations to reach. If the application is approved, creditors will not be able to take any legal action, such as foreclosures, against the company during the reorganization. The hope associated with this is that the company initially continues to exist and is active in order to get back on its feet economically. Of course, there is no guarantee for that. The period for the reorganization may be years. The proceedings are thus roughly in line with German law, in which the insolvency administrator can decide to maintain the operation of a bankrupt company. The idea behind this is that a running company usually generates more revenue for the creditors than it could an immediate smashing.
The background to the Bitcoin Miner Giga Watt
Giga Watt was founded from Bitcoin Miner Dave Carlson. His goal was to open the industry to smaller miners as well. This should be done via special “mining pods” that should enable cost-effective bitcoin mining. At the same time, the company wanted to provide cheap and reliable energy, as well as a 24/7 maintenance service.
In May 2017, Giga Watt launched an Initial Coin Offering (ICO) for financing In January 2018, however, Giga Watt was exposed to a class action lawsuit that accused the company of offering unregistered securities. The plaintiffs wanted to get their investments repaid because the company did not abide by construction delays and alleged repayment pledges.
Sources: The Wenatchee World, scan of the request (Form 201), iFiberone , Pixabay
Author: Peter Joost – Source Post: https://www.kryptovergleich.org/bitcoin-mining-unternehmen-giga-watt-stellt-insolvenzantrag-in-den-usa/
Disclaimer: CoinNewsDesk.com is a crypto news portal, financial discussion forum, and content curator / aggregator. Articles on Coin News Desk are provided for entertainment and information purposes only. We are not an investment advisor and do not provide financial advice.
We can not review all articles posted on CoinNewsDesk.com. Please independently research and verify any information here before relying on it as fact. It's also important to do proper due diligence and analysis, including consulting a professional financial advisor. No content on Coin News Desk makes any recommendation to enter into any type of investment or engage in any investment strategy on this website.