Argo Blockchain PLC (LSE: ARB, NASDAQ: ARBK) has announced a proposed financial restructuring to address urgent capital needs and avoid formal insolvency. The plan will proceed under a court-supervised Part 26A process of the UK Companies Act and involves a significant recapitalisation backed by US-based Growler Mining.
Growler has agreed to provide a senior secured multi-draw term loan of up to $7.5 million, bearing interest at SOFR + 6% (minimum 10%), and subject to commitment and exit fees. The funding will support Argo’s operations during the restructuring process, with the loan potentially convertible into equity.
As part of the plan, Growler will also contribute $25–$30 million worth of crypto assets to Argo’s US subsidiary. In return, Growler would receive at least 80% of the enlarged share capital, while bondholders, owed approximately $40 million, would receive the remainder in satisfaction of their claims. Existing shareholders’ equity would be cancelled, with only a nominal payment offered.
Additional exit capital will be provided by Growler post-completion to recapitalise the business and meet working capital needs. All operating subsidiaries, including mining assets and facilities, will remain under Argo’s ownership throughout.
While Argo intends to maintain its Nasdaq listing, it expects its London Main Market listing to be cancelled following completion. The company aims to present the restructuring plan by 29 August and complete it by the end of November, subject to court approval and creditor consent.
The transaction also requires a waiver from the UK Takeover Panel, as Growler’s ownership would exceed the 30% threshold that normally triggers a mandatory offer.
“There can be no assurance that definitive agreements will be signed or that the plan will be completed,” the company cautioned, warning that failure to do so would likely lead to formal insolvency.
In a leadership update, Matthew Shaw has stepped down as chairman, with non-executive director Maria Perrella assuming the role.
CEO Justin Nolan commented: “This transaction is the culmination of a months-long process designed to preserve Argo’s operations and maximise value for stakeholders. The restructuring plan gives Argo a clear path forward with a significantly deleveraged balance sheet and a long-term strategic investor in Growler.”
Shares in Argo Blockchain were down 69.95% in early morning trading.
