herald on Nostr: Core Scientific Filed Its Chapter 11 Bankruptcy Plan Core Scientific, a Bitcoin ...
Core Scientific Filed Its Chapter 11 Bankruptcy Plan
Core Scientific, a Bitcoin mining company, has filed a restructuring plan in the U.S. Bankruptcy Court for the Southern District of Texas Houston Division as part of its Chapter 11 bankruptcy proceedings.
The company has been consulting with key stakeholders to decide on the future shape of the firm post-bankruptcy. Core Scientific's financial situation has improved since filing for bankruptcy, thanks to higher Bitcoin prices, an increased network hash rate, and lower energy costs. On the plan's effective date, holders of allowed debtor-in-possession (DIP) claims will receive full satisfaction of their claims, either in cash or an agreed-upon alternative, and any liens granted to secure the DIP claims will be terminated.
Core Scientific had previously received permission from the bankruptcy court to take a loan of up to $70 million from B. Riley, one of its largest creditors, to pay off an existing DIP financing loan.
Document: https://cases.stretto.com/public/X217/12024/PLEADINGS/1202406212380000000042.pdf
Core Scientific, a Bitcoin mining company, has filed a restructuring plan in the U.S. Bankruptcy Court for the Southern District of Texas Houston Division as part of its Chapter 11 bankruptcy proceedings.
The company has been consulting with key stakeholders to decide on the future shape of the firm post-bankruptcy. Core Scientific's financial situation has improved since filing for bankruptcy, thanks to higher Bitcoin prices, an increased network hash rate, and lower energy costs. On the plan's effective date, holders of allowed debtor-in-possession (DIP) claims will receive full satisfaction of their claims, either in cash or an agreed-upon alternative, and any liens granted to secure the DIP claims will be terminated.
Core Scientific had previously received permission from the bankruptcy court to take a loan of up to $70 million from B. Riley, one of its largest creditors, to pay off an existing DIP financing loan.
Document: https://cases.stretto.com/public/X217/12024/PLEADINGS/1202406212380000000042.pdf