A California firm that purchased a part of the previous Intel semiconductor manufacturing plant on Backyard of the Gods Highway Tuesday sought safety from its collectors beneath Chapter 11 of the federal chapter code.
3G Enterprise II confronted foreclosures later this month of a $6.5 million loan on 4 buildings it purchased two years in the past for a Bitcoin mining operation. The El Paso County Public Trustee’s Workplace was scheduled to public sale the 4 buildings Dec. 16 if 3G did not make the delinquent funds. A chapter submitting halts the foreclosures course of.
Bitcoin mining coming to Colorado Springs?
3G listed $30 million in belongings, nearly all of it gear utilized in its Bitcoin mining operation within the complicated, and $7.79 million in money owed, practically all of it owed to a partnership managed by Los Angeles-area actual property funding agency Industrial Realty Group (IRG). IRG offered 4 buildings within the Intel complicated to 3G Ventures two years in the past for $13 million, taking a promissory be aware from 3G for $7.63 million.
John Chen of suburban Los Angeles, who owns 3G, did not reply to questions emailed to his Denver chapter lawyer.
Intel sells plant for $15.1 million, will share in future earnings
3G has been utilizing three of the 4 buildings on the location for Bitcoin mining, which entails utilizing highly effective computer systems geared up with particular software program to unravel exceedingly tough math issues. Those that resolve the issues — referred to as miners — obtain Bitcoins for his or her work. Bitcoin miners require huge quantities of electrical energy, which prompted 3G to purchase about half of the previous Intel complicated.
The mining operation generated noise complaints to the town of Colorado Springs from neighbors, apparently from followers used to chill the computing gear, however the sound stage did not violate metropolis requirements.
Intel says it is going to finish manufacturing in August
3G stated its gear consists of followers, wires, bitcoin mining servers, energy provide items, energy distribution items, and instruments, and has an appraised value of $19.6 million. Nonetheless, the corporate stated the gear is worth between $30 million and $60 million, primarily based on “latest affords” that it didn’t establish. Apart from the be aware owed to IRG, 3G additionally stated it owed practically $160,000 in property taxes to El Paso County. 3G additionally disclosed it paid IRG $150,000 in September as a “loan extension charge.”
Below Chapter 11, the debtor enterprise continues to function whereas it comes up with a plan to repay collectors.