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Core Scientific Seeks Debt Recovery During Celsius Bankruptcy Process

Core Scientific is preparing to defend itself against Celsius Mining’s accusations that the hosting provider broke bankruptcy provisions and breached their hosting agreement by failing to install mining equipment on time and unfairly attempting to pass on electricity charges.

The company said in a document filed with the U.S. Securities and Exchange Commission on Wednesday.

“The Company strongly disagrees with the allegations made in the Celsius motion and the interpretation of the Agreement espoused therein and is vigorously defending its interests, including seeking resolution from the bankruptcy court and payment of any outstanding amounts owed under the Agreement (subject to applicable bankruptcy law in the Celsius chapter 11 case) as soon as practical.”

Celsius owes Core Scientific $5.4 million, according to records filed with the United States Bankruptcy Court for the Southern District of New York.

Core Scientific has engaged legal counsel and will vigorously defend its interests in the case and in the present tough market conditions, according to the filing.

Meanwhile, Core Scientific has urged the court to explore a suitable timeline for an evidentiary hearing, which is presently scheduled for Oct. 20, as well as other deadlines, according to a letter addressed to the United States Bankruptcy Court for the Southern District of New York on Sunday. The company also said:

“The false allegations the Debtors make in the Contempt Motion are harmful to Core Scientific, and the breach of contract allegations, premised on the incorrect notion that Core Scientific must subsidize the Debtors’ money-losing mining business to the tune of millions of dollars a month, immediately threatens the viability of Core Scientific’s business.”

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Harold

CoinCu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.