There’s been a lot of talk lately surround bitcoin mining outfit HashFast Technologies and their financial troubles. The company’s CEO previously told Ars Technica that they were “as poor as church mice,” and fired half of its staff to cut costs.
We’re now learning that following a two-day hearing in a U.S. Bankruptcy Court in San Francisco, California, HashFast and its creditors have come to a temporary agreement that will allow the company to resume business (in a limited fashion) as opposed to having the court appoint a trustee that would liquidate company assets in an involuntary bankruptcy filing.
One creditor hoping to see a bankruptcy trustee liquidate assets was Liquidbits, who told the court that HashFast never fulfilled a deal worth $6 million. Should that have happened, HashFast assets would be liquidated in the very near future.
A group of five customers was hoping for a similar outcome, filing an involuntary bankruptcy petition against HashFast in what would be an attempt at recovering $330,000 in money given to the customer — also for orders never fulfilled.
Bankruptcy Judge Dennis Montali has ordered HashFast to abide by previous arbitration with a few modifications, Ars reports.
The previous arbitration order had forced the company away from selling any of their existing stock of chips or other product. With the modifications set by Judge Montali, HashFast will be allowed to sell a limited quantity of product in hopes they will raise some funds.
In total, about 1,000 chips can be sold, along with other inventory at prices not below market value. HashFast will be responsible for reporting back to the court at a later date.
The company will be obligated to hiring a “Chief Restructuring Officer”, an individual from outside of the company would will help guide them into what is hopefully out of the red.
The Chief Restructuring Officer is yet to be named.
If this is successful, the company may be able to file for Chapter 11 Bankruptcy, which will allow them to restructure as opposed to being liquidated and shut down permanently.