A New Jersey bankruptcy court has scheduled the auction of Poolin’s remaining assets for September 10, with qualified bids due two days earlier and an objection deadline that permanently bars any creditor who misses it.
Judge Eamonn J. O’Hagan entered the bidding procedures order on August 17 in the US Bankruptcy Court for the District of New Jersey. The debtors filed a notice of sale by auction on August 19, setting out the schedule.
Five Deadlines Between Now and September 18
Non-binding indications of interest for some or all of the assets are due August 27. Qualified bids must be submitted by September 8. The auction may be held on September 10 at 10:00 a.m. Eastern, either at the offices of Archer & Greiner in Voorhees, New Jersey, virtually, or at another time and place designated by the debtors.
Objections to the sale must be filed by September 16 at 5:00 p.m. Eastern, and the sale hearing is scheduled for September 18 at 11:00 a.m. Eastern before Judge O’Hagan at the courthouse in Trenton.
Missing the Objection Deadline Is Final
The notice states in capitalized text that any party or entity failing to make a timely sale objection shall be forever barred from asserting any objection to the sale transaction, including with respect to the transfer of the debtors’ assets free and clear of all liens, claims, encumbrances, and other interests.
Selling assets free and clear means a buyer takes them without the claims attached, with those claims attaching instead to the sale proceeds.
Objections must be in writing, state the legal and factual bases with specificity, include supporting documentation, and be served on counsel for the debtors, the Office of the US Trustee for the District of New Jersey, counsel for the stalking horse bidder, counsel for the creditors’ committee, and counsel for any winning or backup bidder.
Creditors’ Committee Has Been Appointed
An official committee of unsecured creditors has been appointed in the case, according to the notice. Such a committee represents unsecured creditors collectively and participates in the case at the estate’s expense.
Attendance at the auction is limited to the debtors, the US Trustee, qualified bidders, the committee, and their respective representatives and professionals. Only qualified bidders may make overbids.
Parties interested in bidding are directed to contact counsel for the debtors. The notice was signed by Stephen M. Packman of Archer & Greiner, counsel to the debtors.
$163.7 Million Owed to About 11,700 Wallet Holders
Poolin Technology Pte. Ltd., along with Lonestar Dream Inc. and Lonestar Taproot LLC, filed for Chapter 11 on July 22.
Chief Restructuring Officer Michael DuFrayne put prepetition obligations at approximately $173.1 million, of which roughly $163.7 million consists of unsecured IOUs issued to Poolin Wallet customers after the company suspended withdrawals during the 2022 market downturn. Around 11,700 wallet holders hold those claims.
Thor CALAP LLC has agreed to serve as a stalking horse bidder with a $52 million offer, allocating $37 million to the Tarbush power rights and equipment and $15 million to the Pyote property. A stalking horse bid sets the floor other bidders must beat. The assets remain subject to higher offers and court approval and may be sold separately if that produces a better return for creditors.
Poolin’s Texas mining and hosting operations ceased on July 10, and the company has said it does not intend to resume. It was the largest bitcoin mining pool in the world by September 2019.
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