Argo Blockchain unveiled a sweeping restructuring plan aimed at avoiding insolvency, which will result in the cancellation of existing shareholders' equity. The plan involves handing control of the company to US-based Growler Mining in exchange for emergency financing and asset contributions.
Growler has agreed to provide a $7.5 million secured loan and up to $30 million in crypto assets. Under the proposed plan, bondholders, who are owed approximately $40 million, will receive new shares in the restructured entity, while current shareholders will only be entitled to a nominal payment.
Argo stated that this restructuring is essential to prevent a liquidation scenario that would yield significantly less for creditors and nothing for shareholders. Growler could end up with more than 80% of the company, and the company's London listing is likely to be cancelled, although it intends to retain its Nasdaq presence. In conjunction with the restructuring, Chairman Matthew Shaw has stepped down and has been replaced by Maria Perrella.
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