Case filing & court posture: CTN Holdings, Inc. and 7 affiliated debtors filed for Chapter 11 protection on March 30, 2025 in Delaware (Case No. 25-10603) after funding from founding investor Joseph Sanberg ceased in February 2025 following a DOJ criminal complaint. Dkt. 1 The company operated the Catona Climate brand, sourcing carbon projects and selling voluntary carbon credits with a pipeline of over 100 million tons across the U.S., Uganda, Argentina, Kenya, Colombia, and Brazil.
Liquidity & financing path: At filing, CTN carried approximately $111.3 million in funded debt (including $61.5 million in prepetition secured notes held by Inherent Aspiration, LLC). Dkt. 1 The Debtors obtained a $25.2 million DIP facility from Inherent Aspiration at 12% interest, including $6 million in new money and a $19.2 million roll-up. Dkt. 21
Restructuring outcome: Substantially all assets were sold to stalking horse bidder Inherent Aspiration via a $20 million credit bid with no competing bids. Dkt. 65 The sale closed on June 17, 2025. Dkt. 171
Conversion to Chapter 7: The case was converted to Chapter 7 on August 7, 2025, with Jami B. Nimeroff appointed as Chapter 7 Trustee to administer retained causes of action and remaining assets.
