Bitcoin miner Rhodium Encore LLC’s bankruptcy plan disclosure documents should be rejected by a court because the proposal includes improper third-party releases, a Justice Department unit said.
A provision to opt out of litigation shields for third parties doesn’t allow for “affirmative consent” from creditors, the US Trustee said in its Thursday objection filed in the US Bankruptcy Court for the Southern District of Texas.
“The plan binds hundreds of holders of claims or interests to release countless third parties, unless they timely exercise an option to opt out of such releases,” the US Trustee said.
The liquidation plan proposal ...
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