Cryptocurrency miner Rhodium Encore LLC has filed for Chapter 11 bankruptcy protection, citing debts of more than $50 million. The filing took place in a Texas bankruptcy court, marking a significant financial challenge for the Houston-based company.
Rhodium Encore and four of its affiliates made the bankruptcy filing on Saturday, listing liabilities between $50 million and $100 million. According to court documents, the company’s assets are valued between $100 million and $500 million. The miner, which uses proprietary technology to extract bitcoin, has been facing mounting legal and financial pressures.
Rhodium Encore Filed For Bankruptcy : Legal Battles Add to Financial Strain
Rhodium Encore has recently been involved in two major lawsuits. One is an investor suit in Delaware Chancery Court, while the other is a case in Texas state court. Both legal actions stem from disputes over agreements tied to electricity provisions for the company’s mining operations. These legal issues have likely exacerbated the company’s financial strain, leading to the Chapter 11 filing.
Restructuring Efforts Underway
As part of its restructuring plan, Rhodium Encore has retained Province, a well-known restructuring adviser, to guide the company through the bankruptcy process. The company hopes to reorganize its operations and address its financial obligations while continuing to mine cryptocurrency.
Rhodium Encore Filed For Bankruptcy : Legal Representation
Rhodium Encore is represented by an experienced legal team from Quinn Emanuel Urquhart & Sullivan LLP, including attorneys Patricia B. Tomasco, Joanna D. Caytas, Razmig Izakelian, and Alain Jaquet. Their expertise will be crucial as Rhodium Encore navigates the complexities of bankruptcy court and the associated legal challenges.
