Rhodium Encore LLC and its affiliated debtors have requested a two-week extension of their exclusive periods to file and solicit a Chapter 11 reorganization plan following a significant settlement that secures full recovery for creditors while preserving approximately $90 million for equity holders.
The Houston-based bitcoin mining operation filed a motion on May 5 in the U.S. Bankruptcy Court for the Southern District of Texas seeking to extend its exclusive filing period from May 7 to May 22, 2025, and its exclusive solicitation period from July 7 to July 22, 2025.
The request comes after the debtors successfully resolved substantial litigation with Whinstone US, Inc., a critical development that allows for full payment to creditors while preserving significant value for equity stakeholders. However, the motion notes that additional time is needed to facilitate ongoing mediation among competing equity interests over how to distribute the $90 million "Equity Reserve."
"The Debtors have successfully resolved a number of matters critical to the maximization of the Debtors' assets, resulting in payment in full of creditors and a meaningful distribution to equity," according to the court filing. The motion indicates that mediation began on April 28 under Judge Russell F. Nelms and remains ongoing.
The debtors' legal representatives emphasized that they are not seeking the extension to pressure creditors, but rather to "carefully balance the divergent interests as the sole party exercising fiduciary duties to all stakeholders in these cases." The motion notes that with the exception of the Ad Hoc Group of SAFE Parties (SAFE AHG), all mediation participants support the requested two-week extension.
Rhodium Encore and its affiliates, which operate large-scale bitcoin mining operations at data centers in Texas, filed for Chapter 11 protection on August 24 and August 29, 2024. The companies have been operating under bankruptcy protection for fewer than nine months, during which they have made substantial progress in their reorganization efforts.
A major milestone was reached on March 21, 2025, when the debtors executed a term sheet with Whinstone US, Inc., settling multiple disputes including two adversary proceedings, an appeal, and pending arbitration. The settlement also provided for the sale of tangible assets at the debtors' Rockdale, Texas bitcoin mining facility. The court approved this settlement on April 8, and the sale closed on April 28.
The debtors argue that cause exists for the extension under section 1121(d) of the Bankruptcy Code based on several factors, including the complexity of the case, good faith progress made toward reorganization, the debtors' continued payment of post-petition obligations, and the existence of unresolved contingencies related to the ongoing equity mediation.
In connection with the reorganization progress, the debtors have also prepared motions to pay secured and unsecured creditors and establish a bar date for equity security holders to assert their interests, which were filed simultaneously with the extension request.
Quinn Emanuel Urquhart & Sullivan, LLP represents the debtors in the bankruptcy proceedings.
The case is In re Rhodium Encore LLC, et al., Case No. 24-90448(ARP), in the United States Bankruptcy Court for the Southern District of Texas, Houston Division.
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