Not terribly long ago, we wrote about crypto-currency mining outfit HashFast Technologies making a temporary deal with creditors following financial issues.

Today, the story continues with an announcement from the company indicating they will be reorganizing under Chapter 11 Bankruptcy. Here’s the statement, as seen on the official HashFast blog:

As you may have seen in the press, on May 9 2014, HashFast had a petition filed against us to move the organization into an involuntary bankruptcy. We have been hard at work in developing a plan to see how to best serve our customers, supply vendors, and other creditors.

As a result of these actions, we filed a request to move to a reorganization under Chapter 11 bankruptcy on June 5, 2014 and the courts granted that request on June 7, 2014. We are in the process of finalizing our plans to best serve our creditors.

Our focus is to reorganize the company in a way that provides added value to our creditors, versus a liquidation scenario that would be of less value. As a part of that reorganization, Eduardo DeCastro has resigned as CEO, and we have reduced the operating team to the core functions necessary to continue operations and to effect our plan. In the interim Simon Barber is President and CTO, and Monica Hushen, who recently joined as CFO is handling business operations and bankruptcy matters.

HashFast has retained Katten Muchin Rosenman LLP as its bankruptcy counsel, and we will be working together to generate a reorganization plan that will allow us to emerge from bankruptcy as quickly as possible.

We will be sharing more specific information regarding our reorganization efforts over the coming days.

Under Chapter 11 bankruptcy, the company will be able to continue functioning as a business while restructuring its current debts.It could very well allow the company the opportunity to get back on its feet, as opposed to being liquidated and shut down permanently.

[textmarker color=”C24000″]Via[/textmarker] CoinDesk