RE: MIGI - Creditors file chapter 11 case4 Dec 2024 21:42
I think the hand is well overplayed LongInvestor and many more twists and turns i picked up some more at 80 odd as they wont be going bankrupt over this, especially during this cycle of way higher btc prices.
A subsidiary of the Company, Luna Squares LLC (“Luna”), a Delaware Limited Liability Company, had a Secured Promissory Note with Celsius Mining LLC (“Celsius”) of $20 million with a principal balance of $8 million as of December 31, 2023 (the “Celsius Promissory Note). The Celsius Promissory Note expired in 2023, and the parties did not extend the maturity date with principal and interest balance remaining unpaid. On August 23, 2023, Celsius claims that the maturing of the Celsius Promissory Note on August 23, 2023 may have triggered an event of default which could have the effect of increasing interest from 12% to 14% per annum. However, Luna has claims against Celsius Mining, LLC and Celsius Network Ltd. which may offset and may be in excess of the balance of the amounts claimed by Celsius Mining LLC. Celsius has not paid its customer co-location invoices of $6.96 million to Luna and the Company believes that those invoices are due and payable by Celsius to Luna. Celsius breached its obligations under the colocation agreement causing losses and other damages to Luna and the Company in excess of the balance of the claims asserted by Celsius against it. Celsius transferred the benefit of the Celsius Promissory Note to Celsius Network Ltd. Celsius Network Ltd has filed civil proceedings to enforce its claims against Luna or the collateral and has notified Luna that default interest is payable. Luna is actively disputing Celsius’ claims and is considering pursuing its own claims against Celsius for damages it sustained by Celsius’ contractual defaults in amounts equal to or greater than that claimed against it. Luna Squares LLC has moved to remove the matter from Celsius’ bankruptcy proceedings into arbitration as required in the agreements between the parties and filed a stay in the Celsius bankruptcy proceedings pending appeal. Luna also plans to continue to pursue payments it expects from Celsius on its unpaid invoices to Luna and other cross-claims and counter-claims against Celsius Mining LLC and Celsius Network Ltd. Company, Luna and Celsius have each reserved their respective rights.
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