Mining Project Wind Down Holdings, Inc. (formerly Compute North Holdings) has filed an emergency motion in the U.S. Bankruptcy Court for the Southern District of Texas, seeking to amend its litigation trust agreement following the resignation of a key oversight committee member. The case, filed under number 22-90273 (MI), involves a complex restructuring of the crypto mining infrastructure company.
The motion, filed by McDermott Will & Emery LLP on behalf of Tribolet Advisors, LLC, the plan administrator and litigation trustee, requests modifications to allow Touzi Capital, LLC to resign from the Plan Oversight Committee without requiring a successor. The current structure mandates at least two committee members, but recent events have complicated this requirement.
According to court documents, Touzi Capital became subject to litigation resulting in the appointment of a receiver. The receiver, appointed by a California state court on October 7, 2024, has indicated they do not wish to serve on the committee. Additionally, the Securities and Exchange Commission filed a complaint against Touzi and its principal in November 2024 for allegedly misleading investors.
The remaining committee member, Decimal Digital Currency I, LLC, has expressed willingness to serve as the sole member. The motion argues that this arrangement would be the most efficient solution given the advanced stage of proceedings and the need for immediate decision-making capabilities.
Attorneys for the litigation trustee argue that the proposed changes do not constitute a material modification under bankruptcy law and would not alter the fundamental rights of stakeholders.
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Document length: 43 pages