Company: ARBK
Filing Date: 2025-11-07
Form Type: 6-K
Source: 0001654954-25-012677
Chunk: 2

Company: Argo Blockchain Plc
Filing Date: 2025-11-07
Form: 6-K
Chunk 2
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 debt into new ordinary shares (to be held as American Depositary Shares), together with release of its existing liens and security interests across UK, US, and Canadian subsidiaries.

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Noteholder Treatment: the exchange of the 8.75% Senior Notes due 2026 (ARBKL) for a pro rata allocation of 10% of the enlarged issued share capital of the Company.

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Equity holders: the holders of the current issued share capital (including those who hold ordinary shares in the form of American Depositary Shares) will see their aggregate interest in the Company diluted to 2.5% of the enlarged issued share capital.

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Corporate and Listing Structure: delisting of the Company's shares from the London Stock Exchange while intending to maintain its Nasdaq listing, subject to compliance with applicable listing criteria, with an updated ADR ratio from 1 ADR = 10 ordinary shares to a ratio of 1 ADR = 2,160 ordinary shares post-recapitalisation.

Upon completion of the Restructuring Plan in December 2025, Growler will receive its 87.5% interest in equity interests in the Company in exchange for the following: (i) its secured loans to the Company, which are anticipated to have been fully drawn in an aggregate amount of US$7.5 million, (ii) its contributed exit capital of US$3.5 million, and (iii) its contributed assets with an estimated book value of between US$25 million and US$30 million.

In order to have the Court sanction the Restructuring Plan, Argo must demonstrate that the Restructuring Plan shows a fair allocation of the restructuring surplus among all Plan Participants (as defined in the Restructuring Plan). Part of this assessment of fairness includes establishing that Plan Participants are in no worse position than they would be in the "Relevant Alternative" (the so called "no worse off" test). To this end, Argo has filed with the Court a copy of expert reports prepared by Kroll Advisory Ltd. and Kroll Financial Advisory Services, acting as the Company's independent valuation and restructuring advisers. The Relevant Alternative in the Company's case would be an insolvency process.

The Relevant Alternative analysis concluded that, if the Restructuring Plan were not implemented, the enterprise value of the Company would be approximately US$8 million with a 0.72% recovery to unsecured creditors (including noteholders), with no recovery to shareholders and a 100% recovery for Growler