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A bankruptcy judge advanced an inquiry into Celsius Network LLC’s business practices and whether it operated as a Ponzi scheme, responding to customer demands to look into how the crypto lender used their money, WSJ Pro Bankruptcy reported. A court-appointed examiner and the official committee of Celsius creditors were instructed in a bankruptcy-court hearing Tuesday to meet and confer about who will lead the probe into whether the firm used some depositors’ money to meet financial obligations to others. “We don’t know if Celsius was a Ponzi scheme, but there are flags that came up,“ said the creditors committee’s lawyer, Greg Pesce. “Let me make it clear we’re looking into whether it is. We don’t have an answer to that.” The examiner, Shoba Pillay, also will broaden the scope of her probe to include the company’s marketing practices and representations it made to attract new customers, as well as its handling of CEL tokens, the firm’s proprietary digital currency. Celsius didn’t immediately respond to a request for comment. The closely held crypto firm, which filed for bankruptcy after freezing withdrawals in June amid a meltdown in digital currencies, has faced allegations from customers and state authorities that it made misleading statements about its financial health and used assets of new investors to pay yields to account holders.

Movie theater chain Cineworld Group on Monday announced a bankruptcy settlement with its landlords and lenders, clearing the way for the company to borrow an additional $150 million and make a $1 billion debt repayment, Reuters reported. Landlords and junior creditors dropped their opposition to the billion-dollar debt repayment after Cineworld agreed to pay at least $20 million in rent that will accrue after Sept. 30. Britain's Cineworld, which filed for bankruptcy protection in Texas in September with less than $4 million in cash on hand, previously did not intend to make any post-September rent payments until the end of its bankruptcy. Cineworld, the world's second-largest cinema chain operator, also agreed to explore a potential sale of the business and allow creditor input on its business plan. Bankruptcy Judge Marvin Isgur in Houston said that the agreement was a "pretty amazing" result given the widespread landlord and creditor opposition to Cineworld's bankruptcy financing at the start of its chapter 11 case. Creditors had filed 15 objections to the loan in court, and the company resolved about a dozen more objections before they were filed, Cineworld attorney Christopher Marcus said in court.

A failed plan to bring the Carolina Panthers practice facility to Rock Hill could result in York County being awarded over $81 million, WCNC.com reported. Bankruptcy Judge Karen Owens yesterday filed a motion to allow York County to have an $81 million voting stake in the bankruptcy fallout relating to David Tepper's GT Real Estate company. Owens made the decision because she was worried about how the county would receive no relief from the project's fallout. "I'm concerned with the danger of disenfranchisement of the county," Judge Owens said during the court hearing. "It is appropriate for them to have a voice in the vote and at the confirmation proceedings." Without a voting stake, parties that are owed money from the bankruptcy deal could risk not receiving what they are owed. Other contracting parties have already somewhat agreed to receive millions from the bankruptcy deal. However, GT Real Estate's bankruptcy proposals left no funding for York County or the city of Rock Hill. Yesterday's hearing only pertains to York County. The city of Rock Hill will have to wait till at least Nov. 16 to see if a similar voting stake for $20 million will be granted, according to court records.

The first tip arrived last December. In an email to a Justice Department official, an anonymous author called for a probe into the handful of private companies that courts enlist to process paperwork in big bankruptcy cases, Bloomberg News reported. The concern: some of these companies, known as claims agents, were selling data to a new market maker, Xclaim Inc., which facilitates the buying and selling of the debts of bankrupt companies. The deals allowed claims agents to profit from the trades. What followed is a courtroom reckoning that threatens to disrupt the quietly lucrative world of bankruptcy administrators and a niche, multibillion-dollar financial market that depends on them. Several claims agents face judicial sanctions in New York City, one of the nation’s busiest bankruptcy districts. A worst-case scenario could see the companies barred from doing business with those courts entirely, putting millions of fees at risk. Bankruptcy Judge Martin Glenn has ordered each claims agent in his district to explain whether they cut deals with Xclaim and disclose a detailed accounting of the arrangements. He’s also weighing sanctions against Xclaim’s founder and another employee for publicly disclosing the contact information of federal employees during the proceedings.

Argo Blockchain's (ARB) said a deal to raise 24 million British pounds ($27 million) from a strategic investor has fallen through, sending the bitcoin mining company's shares tumbling as much as 72%, CoinDesk.com reported. The London-based firm, which earlier this month signed a letter of intent to sell 87 million shares to the investor as it looked to ease liquidity pressures, didn't say why the agreement had been called off. It is working to secure other deals to provide working capital for the next 12 months. "Should Argo be unsuccessful in completing any further financing, Argo would become cash flow negative in the near term and would need to curtail or cease operations," it said in a statement to the London Stock Exchange. Argo shares fell to as low as 4.25 pence and were recently trading about 7 pence. They have lost some 92% this year. In an attempt to secure short-term liquidity, Argo sold 3,843 Antminer S19J Pros for $5.6 million. It had previously intended to sell 3,400 miners for $7 million.

A loss-making joint venture between Stellantis NV and Guangzhou Automobile Group Co. will file for bankruptcy, Dow Jones Newswires reported. Stellantis will continue providing services to existing and future Jeep brand customers in China, according to a statement by the company on Monday. The plan to file for bankruptcy has been approved by the shareholders of the joint venture, Stellantis said. Stellantis had impaired the value of its investment in the joint venture and other related assets in its first-half financial results. In July, Stellantis said that it was pulling out from the joint venture and that it would instead focus on selling imported Jeep vehicles into China. Stellantis is the parent of auto brands including Jeep and Chrysler.

Cryptocurrency miner Core Scientific Inc., one of the world’s largest bitcoin miners, said yesterday that it may seek bankruptcy protection as it contends with the prolonged slump in bitcoin prices coupled with an increase in electricity costs. The Austin, Texas-based company is also in litigation with crypto lender Celsius Network LLC, and alleges that Celsius has refused to pay its bills since it filed for chapter 11 itself, threatening Core Scientific’s own financial health. Core Scientific said that due to the impact on its performance and liquidity, it plans to miss debt payments due within days, and has engaged Weil, Gotshal & Manges LLP and PJT Partners as legal and financial advisers. Core Scientific said that as of this week it held 24 bitcoins, compared with 1,051 bitcoins at the end of September. “The company anticipates that existing cash resources will be depleted by the end of 2022 or sooner,” Core Scientific said. Crypto miners have been hit by hard times this year with crypto prices collapsing and the surging cost of electricity, which companies guzzle in large amounts to produce digital coins.

Bankrupt Texas petrochemical producer TPC Group on Thursday announced a $30 million settlement with junior creditors, including people with injury and property damage claims related to a 2019 fire explosion and fire at a Port Neches, Texas, refinery, Reuters reported. The Houston-based firm filed a pre-packaged chapter 11 case in June after reaching an agreement with bondholders to eliminate $950 million of $1.3 billion in secured debt and shed liabilities from an explosion and fire at its plant in Port Neches, Texas. A bankruptcy plan based on that agreement would have left just $5 million for junior creditors and litigation claimants. Yesterday's settlement increases junior creditors' recovery to $30 million and ensures that a higher percentage of those funds will go to litigation claimants. Bondholders, who will not be fully repaid in TPC's restructuring, agreed not to collect any money from the $30 million fund.

Revlon Inc.'s bankruptcy attorneys said in court yesterday that the cosmetics company is engaging with possible purchasers as a way to exit from chapter 11 as quickly as possible, Reuters reported. Revlon attorney Paul Basta told U.S. Bankruptcy Judge David Jones in Manhattan that the company is ready to move onto the next stage of its bankruptcy after stabilizing its relationship with vendors and completing a long-term business plan. Revlon is exploring a possible sale of the company and has begun sending nondisclosure agreements to interested bidders, Basta said. Revlon junior creditors argued in court that rushing toward a sale before the 2022 holiday season would only benefit senior lenders who forced the company to accept unrealistic deadlines as part of Revlon's $1.4 billion bankruptcy loan.

Talen Energy Supply LLC received court permission Wednesday to begin soliciting creditor votes on a bankruptcy restructuring plan that would convert $1.4 billion in debt to equity and raise up to $1.9 billion through sale of new equity shares, Reuters reported. Bankruptcy Judge Marvin Isgur in Houston said that he would approve the company's disclosure statement, which describes the reorganization plan, after revisions were made that will keep the door open for potential overbids from outside buyers. Creditors will then vote to approve the plan. Talen's restructuring is supported by a group of its existing unsecured bondholders, including funds managed by Nuveen Asset Management LLC, Rubric Capital Management LP and Citadel. Those bondholders agreed to convert $1.4 billion in existing debt to new equity shares and agreed to backstop at least $1.55 billion of a planned $1.9 billion equity offering, according to the disclosure statement. Talen, which filed for chapter 11 protection in May, owns 16 energy generation facilities in the U.S., with a mix of nuclear, natural gas, oil and coal-powered facilities.