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Bay Point Advisors Provides $7.5M DIP Loan to Cryptocurrency Mining Facility in Atlanta

May 26, 2020, 09:10 AM
Filed Under: Mining

Bay Point Advisors announced it has entered into a senior secured debtor-in-possession (“DIP”) financing agreement with a network of blockchain mining companies comprising VC Mining Enterprises Inc., Godby DC-5 LLC, Godby DC-4 LLC, Hemphill Avenue LLC, and Virtual Citadel LLC (collectively “the Company”), which has filed for bankruptcy protection under Chapter 11 under the United States Bankruptcy Code.

Under the agreement, Bay Point Advisors has committed $7.5 million in new funding to support the Company through the Chapter 11 process. This additional financing provides the Company with a strong financial foundation to support existing operations, restructure costs, and satisfy prior debt obligations.

The Company will work expediently with its stakeholders towards establishing a consensual Chapter 11 plan to maintain existing infrastructure while ensuring consistent operations. The Company expects to implement necessary restructuring that will lead to profitable on-going operations and a potential sale of the Company. Marshall Glade of Glass Ratner is serving as the restructuring advisor and David Gordon of Polsinelli is serving as The Company’s legal advisor. John Isbell of the Law Offices of John F. Isbell LLC served as legal advisor to Bay Point Advisors.

“This is another example of Bay Point Advisors working with a distressed borrower through a difficult situation to maximize value for all stakeholders. We look forward to working with others in similar situations in the future,” said Charles Andros, President and Chief Investment Officer of Bay Point Advisors.

“Bay Point Advisors stepped up in a difficult situation and has allowed the debtor time and flexibility to enhance creditor recoveries. Their knowledge and comfortability with the bankruptcy process has made them a great partner to work with," said Marshall Glade of Glass Ratner.

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