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<a href="https://bitcoinworld.co.in/rhodium-enterprises-court-approval-30m-loan-bankruptcy/" title="Bitcoin Mining Firm, Rhodium Enterprises, Gets Court Approval For $30M Loan Amid Bankruptcy" rel="nofollow"></a>
<a href="https://rhdm.com/" target="_blank" rel="noopener">Rhodium Enterprises</a>, a Bitcoin (BTC) mining company that recently filed for bankruptcy, has received court approval to secure a $30M loan in fiat or Bitcoin. 
The company has the option to borrow $30 million or 500 BTC from Galaxy Digital. However, the U.S. dollar loan includes a 14.5% annual interest rate, while the Bitcoin loan offers a lower interest rate of 9.5%, according to a Bloomberg report. 
With the lender’s consent, Rhodium is allowed to repay the loan in BTC in the form of U.S. dollars using “reasonable published market spot prices” at the time of repayment, provided it occurs before the maturity date. 
This approval is notable in the context of bankruptcy financing within the crypto sector, largely due to the volatility of the Bitcoin price, which complicates the task of forecasting the total amount of loan repayment regardless of the interest rate. 
On August 24, Rhodium Enterprises voluntarily <a href="https://bitcoinworld.co.in/bitcoin-mining-firm-rhodium-enterprises-files-chapter-11-bankruptcy/">filed</a> for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of Texas, citing liabilities of up to $100 million. 
The filing included six subsidiaries – Rhodium Encore, Jordan HPC, Rhodium JV, Rhodium 2.0, Rhodium 10MW and Rhodium 30MW. The company’s debts reportedly range between $50 and $100 million, while its total assets are estimated at $100-$500 million. 
By electing Chapter 11 bankruptcy, Rhodium Enterprises can restructure its debts while continuing operations. This process allows the company to negotiate a revised repayment plan on new terms.

Bitcoin Mining Firm, Rhodium Enterprises, Gets Court Approval For $30M Loan Amid Bankruptcy

ItsBitcoinWorld

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