Poolin owes $163.7M; $52M Texas sale may end Aug. 9

Poolin Technologies and several affiliates filed for Chapter 11 on July 22. The filing lists roughly $173.1 million in preliminary prepetition obligations, including $163.7 million in IOUs issued after a 2022 liquidity crisis to about 11,700 wallet holders with balances over $100.

Two West Texas mining asset packages are under a proposed sale to Thor CALAP LLC for a combined $52 million. The packages are held by Lonestar Dream Inc. and Lonestar Taproot LLC, not by Poolin Technology itself. Under amended agreements, Thor would pay $37 million in cash for the Tarbush package and $15 million for the Pyote package. Initial deposits of $1.85 million and $750,000 have been posted; remaining balances are due at closing.

Thor’s due diligence period runs through Aug. 9. The buyer may terminate either transaction during that period if its review is unsatisfactory. Objections to the proposed bidding procedures and sale motion are due by Aug. 7. The court scheduled a hearing for Aug. 14 at 11 a.m. ET to consider the sale process.

The debtors have proposed a post-hearing timetable that sets a Sept. 8 bid deadline, a Sept. 10 auction if needed, and a final sale hearing by Sept. 16. A prepetition marketing effort produced three other indications of interest but did not guarantee competing qualified offers.

Lonestar Dream halted mining and hosting operations at the sites on July 10. The debtors have indicated they do not plan to restart site operations before a sale.

Poolin Technology’s non-mining assets listed in the filing are limited to about $1.2 million in cash, an office lease and an intercompany claim against the Lonestar entities. The IOUs and the Texas assets sit in separate debtor estates, which means the allocation of sale proceeds across estates will affect recoveries for wallet creditors.

Factors that will reduce the amount available for wallet holders include any valid liens on sale proceeds, transfer taxes, professionals’ fees and administrative costs, and the treatment of Poolin’s intercompany claim against the Lonestar entities. The court must approve the sale process and any allocation of net proceeds before distributions can occur.

Immediate dates to watch are Aug. 7 for objections, Aug. 9 for Thor’s diligence cutoff, and the Aug. 14 hearing. If Thor terminates the agreements or no higher bids emerge, the pool of value available to satisfy the $163.7 million of IOUs could change. If the buyer remains and the court approves a sale and allocation, the estates will then address claim priorities and allowable deductions before any creditor distributions.