American mining firm Giga Watt declared bankruptcy and owes millions of dollars to creditors.
The firm filed for bankruptcy under Chapter 11 of the bankruptcy Law of the United States in the court of the Eastern district of Washington on Monday. In documents the company has indicated that it continues to have its largest 20 unsecured creditors almost $7 million dollars.
Creditors of the company – a utility company in the County of Douglas, state of Colorado, where one of the mining farms, her Giga Watt $310 000, and the electricity supplier Neppel Electric, which is owed nearly half a million dollars.
According to court documents, Giga Watt has assets of less than $50 000, while the estimated debt of the company amounts to 10-50 million dollars.
“The Corporation is insolvent and cannot pay their debts in time”, — stated in the Protocol of the special meeting of shareholders of Giga Watt, which took place on November 18. “The Corporation and its creditors in the best way will solve this problem by reorganizing the Corporation in accordance with Chapter 11 of the bankruptcy Act”.
Meeting called Andrew Cousin, who owns more than 10% of the mining company.
Giga Watt was founded the once well-known in the community of miner Dave Carlson (Dave Carlson) to open access into the industry for small miners by creating individual modules with cheap and stable electricity, as well as round the clock service facility in the heart of Washington state.
Under the plan, which allows investors to buy a share in the company’s services in may of 2017 was held on the initial placement of tokens (ICO) with which the firm was able to collect cryptocurrency amounting to $22 million at the exchange rate at the time.
However, in January this year, a group of plaintiffs filed a lawsuit on Giga Watt for conducting an unregistered offering of securities. The plaintiffs sought to recover its investment because the firm does not comply with construction deadlines, as well as, they claim, did not keep promises to return the investment.