I had stated it already in another comment here that the court documents are publically available.
After doing some more research I have identified a path how the court documents can be made available to all if some of us take action and even be willing to pay a small fee.
So let me know if you are interested and if you are willing to participate:
React to this post with a heart if you are interested in receiving the court files.
React with a thumbs up if you would be willing to take action and eventually pay a (small) fee via credit card so that these can be made available to the community. For that a credit card would be required that gets successfully verified.
Let’s gather the numbers and who is willing and see then how we can proceed.
If we join forces on this, we could prevent the community from paying multiple times for the same information even if it’s low fee only.
Additionally: If you have already a PACER account or know somebody who has and would be willing to help out to make the court files availble, that would be terrific and would make things much easier. Please react with a clap in this case.
For the time being I have chosen to upload the file to a file sharing that deletes it in 7 days because of the search engines. It is probably not required as the files will become publically available anyways at some point. Let’s see the reactions to this thread if more can or shall be posted and/or with permanent links.
It’s interesting their largest creditor is Inveniam… but the second largest is the “US Department of the Treasury”. Would that be unpaid federal taxes? Georgia Department of Revenue is on there too - maybe State taxes?
As discussed with @littleskunk and @jammerdan, several important questions remain regarding the treatment of SNO payouts in the filed 12-week operating budget:
Does the $390,854 listed as “Cost of Goods Sold” consist mainly or entirely of SNO payouts?
Is the $191,000 payment scheduled for August 24–25 intended to cover the complete July SNO payout?
What periods and obligations are included in the separately disclosed $296,316.79 prepetition “SNO liability”?
What exact payout-rate reduction, expansion-factor reduction, or combination of measures is already assumed in the budget?
How much does the assumed reduction save during the 12-week budget period?
What financing or transaction plan is expected to support operations after October 25, when the filed budget ends with only $8,875 remaining?
The folder contains the original public court filings, including the DIP financing motion, CRO declaration, DIP credit agreement, 12-week cash-flow budget and proposed interim order.
Please note that Docket 15 is a proposed order filed by Storj’s counsel, not necessarily the final order entered by the court after the hearing.
That is a non-profit that makes court documents from the official US cour electronic records service (PACER) available for free. Users who have a PACER account can directly upload files there that other users have requested. If you follow the link you can see how it works.
2 things can be done:
Help requesting the files we are interesting in, so users with PACER account make them available
Create a PACER account and make them available there by uploading them to their site. PACER is free up to $30 usage per quarter. PACER: Login
So no seperate linksharing would be required and anybody potentially can access the official documents.
Docket 21 appears to be a revised proposed interim order submitted after the August 4 hearing.
The requested financing terms remain unchanged: $388,000 in total, with only $100,000 authorised at the interim stage and the remaining $288,000 subject to a later final order.
One meaningful change is that professional fees are now expressly subject to normal fee applications, review by the U.S. Trustee and approval by the court. The earlier proposed order would have allowed broader payment of professional fees without the usual approval process.
However, Docket 21 is still only a proposed order prepared by Storj’s counsel. It is not yet the signed and entered order of the court.
Docket 26 is the signed interim DIP order. It authorizes an initial $100,000 immediately or shortly after entry of the order, while the remaining $288,000 will only become available after the final order.
The $100,000 is not Storj’s entire available liquidity. According to the submitted budget, Storj expects approximately $302,331 in customer receipts through August 25. The DIP advance is therefore an additional liquidity bridge covering part of the cash-flow deficit, rather than funding all operating expenses by itself.
The largest scheduled payment immediately before the final hearing is $191,000 in Cost of Goods Sold on August 24–25. It is plausible that this includes the monthly SNO payouts and that the initial $100,000 is intended to top up customer receipts so these payments can be made. However, neither the order nor the budget explicitly identifies this amount as SNO payouts.
Relevant points in the Docket 24 hearing audio:
Around 12:35–13:10, Storj’s counsel appears to state that the company has approximately $4 million in secured debt and $9 million in unsecured debt.
Around 38:45–39:20, the judge specifically asks whether Storj is requesting only $100,000 on an interim basis. Storj’s counsel confirms this. The amount was therefore not reduced to $100,000 by the judge.
Around 43:25–44:10, the judge discusses the urgent need for liquidity, including payroll and continued operations, and approves the interim financing. The final hearing is scheduled for August 25.
The documents do not provide an exact payment date for the first advance. Docket 26 only states that the $100,000 should be provided “immediately or soon after entry” of the order, which was entered on August 5. There is no confirmation yet that Storj has actually received the money.
I’m not familiar with U.S. law—can someone explain: What is the liability of the owner and management of a company that goes bankrupt, for example, due to accumulated debt? Seizure of personal assets or something like that? Do these documents mention this…?
I can’t speak to this bankruptcy: but one of the strongest reasons to form a company in the first place is so it has it’s own assets and liabilities: separate from the founders. You need to do some very illegal things for them to even try to make owners personally liable.
Yes. That is deliberate. If an ordinary business failure exposed owners and management to personal ruin, very few people would take the risk of starting a business in the first place.
Or it shapes a different culture.
Let met tell you that I kind of agree and disagree to your statement at the same time.
Coming from Germany which has a huge business culture based on the “Mittelstand” and family-run businesses so exactly those kind of owners and self-employed business owners who are 100% liable with their own personal private capital for their business.
This is really huge here. So I disagree here. It does not keep people from starting a business. But it keeps them from running it wild and in a hazardous way. It keeps them from lying. And they act more risk averse as a failure can mean personal ruin.
One kind of his own of this species is the former leader of the company Trigema Wolfgang Grupp who ran his company with appr. €130m revenue per year as 100% personal liable company. He is also very critical towards legal structures that limit liabilties. Of course we have those corporate legal forms here too, but they are rather expensive to create and to run.
That said, Germans are culturally rather risk averse and we prefer stability and continuity over fast risky change. So does this mindset form the business culture we have in Germany or does the business culture forms such a mindset?
In the United States you can operate a business as a Sole Owner, a Partnership, or a Corporation. There are many variables to each. One purpose of incorporating is to reduce liability. This doesn’t mean company owners can act criminally, including financial crimes, but if the business fails through poor management, that management is largely protected from criminal and in most cases civil penalties.
When Storj Labs was purchased by Iveniam IO, the Storj stock was converted to Iveniam stock. Storj acts as a subsidiary of Iveniam IO with only one owner now, Iveniam IO. Storj is still legally a corporation which shields Iveniam IO from any debt or legal obligations Storj Labs may have.
Contrary to this, we can see quite some interest for the provided links where the court documents can be downloaded that have been made available at the courtesy of @GfTmbHwho has paid for every single one of them.
Chapter 11 procedures can take a long time. Which means a lot of orders and filed documents.
You can help to keep the community informed by helping to make the documents of this case available:
Create an account on https://www.courtlistener.com/docket/73672591/storj-labs-inc/ and request existing and keep requesting new documents of this case. The more requests a document has the higher is the change that existing users fom Courtliestener will fullfill this request and buy the requested document.
If you want to actively help by buying documents, then create additionally an account on PACER which is the offical Public Access To Court Electronic Records from the US government. An account with a credit card can download court documents worth up to $30 per quartal without cost. Through courtlistener in connection with PACER the documents can be bought and can be made available for download. So instead of single users buying the same documents over and over and depleting their free limit join forces and make the documents available at zero expenses for any users.
I did a quick calculation and it seems that buying all existing documents via courtlistener/PACER hits already >$18 and the quartal ends in September. So we are already close to $30 in that ongoing procedure. If multiple users help out on this, nobody will be charged.
if you are interested in receiving the court files.
if you would be willing to take action and eventually pay a (small) fee via credit card so that these can be made available to the community. For that a credit card would be required that gets successfully verified.
in this case.
So the current management won’t bear any liability either…? Whatever they do?