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Argo Blockchain PLC on Friday reported that loan discussions under its proposed recapitalisation plan remain ongoing, with potential insolvency under consideration should its plan not be realised. London-based Argo is a blockchain technology company focused on cryptocurrency mining with operations in the US and Canada. Argo on Friday said negotiations with Growler Mining Tuscaloosa LLC regarding the terms of the senior secured multi-draw term loan remain ongoing. Growler Mining is a privately held company that operates cryptocurrency mining facilities in Alabama. Shares in Argo slumped 23% to 1.43 pence on Friday morning in London. The loan from Growler Mining forms part of the Argo’s restructuring plan proposed back in June to address its short and medium term capital needs. In May, at it 2024 full-year results, Argo said: ‘A material uncertainty exists that may cast significant doubt on the group’s and company’s ability to continue as a going concern.’ These material uncertainties were tied to a mix of debt service requirements, lower operating margins and ‘the volatile economic and industry environment’. In June, Argo said it had entered into a restructuring plan support agreement with Growler Mining that sees Growler provide the loan for the purposes of working capital, and to a support the company with its restructuring plan. Argo said that the loan would be a senior secured multi-term loan facility up to $7.5 million, bearing interest at the secure overnight financing rate, plus 6%. On Friday, the company said the loan has not been executed or funded to date, adding that the first court hearing for its restructuring plan is set to take place in October, expecting it to become effective in December. Should the loan be converted into equity, in addition to contributions by Growler of crypto mining assets and other funding, Argo noted that Growler would own at least 80% of its share capital. It added that bondholders would receive equity in the recapitalised Argo in exchange for debt, with existing shareholders retaining equity, though their interests would be subject to dilution. Argo said that in the instance the plan does not come to fruition, it will consider other alternatives, including insolvency. The company further noted that it did not make scheduled interest payments on its outstanding bonds due July 31, stating that these are subject to a 30-day grace period ending August 30. In June, Argo noted that its bondholders collectively held bonds of approximately $40 million in aggregate. Argo said it expects to update the market further as the terms of the plan are finalised and agreed upon. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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