Creditors Practice Section

This section was created for attorneys who are in the creditors practice field. It provides its members the opportunity to exchange information with other practitioners in this area of practice, provides timely CLE and legislative updates.

Chair
Law Office Hall & Associates
223 Madison Street, Suite 212
Madison, TN 37115
(615)868-4101
Immediate Past Chair
Attorney at Law
1275 Habersham Way
Franklin, TN 37067
(615)403-6556
Staff Coordinator
Tennessee Bar Association
221 4th Avenue N. Suite 400
Nashville, TN 37219
(615)383-7421

Bankrupt Crypto Mining Firm Giga Watt Owes Millions to Creditors

Chapter 11 bankruptcy court documents filed last week by U.S.-based bitcoin mining firm Giga Watt revealed millions are still owed to creditors, CoinDesk reports. Nearly $7 million is owed to its biggest 20 unsecured creditors, including a utility provider and an electricity provider. The court documents also revealed that Giga Watt’s assets are estimated at less than $50,000 while the estimated liabilities are somewhere between $10­ and $50 million. Minutes from a special meeting of the firm’s shareholders indicate the belief that the creditors and corporation would best be served by reorganization under Chapter 11.

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Bloomberg: Puerto Rico Set to Reduce Development Bank’s Debt

Puerto Rico is set to make its first debt exchange since collapsing into bankruptcy in 2017, Bloomberg reports. Government Development Bank will exchange its bonds for $2.6 billion of new securities and around $4 billion of the bank’s debt will be restructured under the transaction. The article notes that Puerto Rico will likely have to make several exchanges in order to reduce the $74 billion of debt sold by various arms of the island. The government-sponsored bank, which also served as the island’s fiscal adviser, extended loans meant to deal with operating deficits experienced by the commonwealth and its agencies. The economy continued to shrink, and these loans contributed to its over-borrowing. Although the exchange is aimed at resolving the island’s debt crisis, the bond document notes the risks and uncertainty associated with the restructuring.

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