Hashfast files for Chapter 11 – hangletonweblogs

Recently various creditors filed lawsuit against Hashfast to force it in to an involuntary bankruptcy. On June 5th the company moved to file for a reorganization and it was approved on June 7th.

The company released a statement this afternoon stating…

HashFast creditors, customers, partners and suppliers,

As you may have seen in the press, on May 9 2014, HashFast had a petition filed against us to move the organization into an involuntary bankruptcy. We have been hard at work in developing a plan to see how to best serve our customers, supply vendors, and other creditors.

As a result of these actions, we filed a request to move to a reorganization under Chapter 11 bankruptcy on June 5, 2014 and the courts granted that request on June 7, 2014. We are in the process of finalizing our plans to best serve our creditors.

Our focus is to reorganize the company in a way that provides added value to our creditors, versus a liquidation scenario that would be of less value. As a part of that reorganization, Eduardo DeCastro has resigned as CEO, and we have reduced the operating team to the core functions necessary to continue operations and to effect our plan. In the interim Simon Barber is President and CTO, and Monica Hushen, who recently joined as CFO is handling business operations and bankruptcy matters.

HashFast has retained Katten Muchin Rosenman LLP as its bankruptcy counsel, and we will be working together to generate a reorganization plan that will allow us to emerge from bankruptcy as quickly as possible.

We will be sharing more specific information regarding our reorganization efforts over the coming days.

– The HashFast Team

Also of note is the immediate resignation of the CEO Eduardo DeCastro.