- Climate finance firm Aspiration Partners (CTN Holdings) files for Chapter 11 amid fraud scandal.
- Major creditors include billionaire Steve Ballmer’s LA Clippers, owed around $40 million.
- Case highlights governance concerns in voluntary carbon market.
Climate finance startup Aspiration Partners (CTN Holdings) filed for Chapter 11 bankruptcy protection Sunday evening, seeking asset sales to repay approximately $170 million in outstanding debts. The move follows the arrest of co-founder Joseph Sanberg on federal fraud charges.
Chief Restructuring Officer Miles Staglik, from CR3 Partners, cautioned creditors to prepare for delays:
“Realising value will require substantial investment and patience.”
CTN, previously backed by tech giants like Meta Platforms and Microsoft, plans an asset auction within 45 days. It secured $4 million in debtor-in-possession financing to maintain operations during bankruptcy proceedings.
The collapse closely follows charges against Sanberg, accused of defrauding investors of at least $145 million. The U.S. Department of Justice clarified:
“The allegations relate solely to Sanberg’s personal conduct and do not implicate CTN or its affiliates.”
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Staglik emphasized that current leadership and employees were unaware of the alleged fraud:
“Mr Sanberg no longer holds any position or role within the company.”
However, Sanberg’s scandal severely impacted CTN’s ability to secure additional funding.
Among CTN’s largest unsecured creditors are the Los Angeles Clippers and Kia Forum, both owned by billionaire and former Microsoft CEO Steve Ballmer, owed approximately $40 million linked to contracted carbon credits.
Sanberg’s attorney, Marc Mukasey, stated he intends to:
“vigorously defend” against all charges.
The bankruptcy highlights significant governance and oversight challenges within the rapidly growing voluntary carbon market, raising concerns for executives and investors alike.
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