Bondholders Of Core Scientific Is Working With Restructuring Lawyers

According to Bloomberg Law, a group of convertible bondholders of Core Scientific, the largest Bitcoin miner by processing capacity, is in negotiations with restructuring attorneys at Paul Hastings.

The announcement comes only days after Core Scientific disclosed in public documents that the company may run out of funds and be forced to declare bankruptcy.

The company also stated that it deals with Weil, Gotshal & Manges as legal counsel and PJT Partners as finance counsel as it investigates potential strategic alternatives for raising capital. Exchanging existing debt for equity or more debt, asset sales, equity, or debt financing are all possibilities.

The Bloomberg article on Tuesday did not disclose which convertible bondholders had hired the attorneys.

Core Scientific’s problems echo the industry’s downturn, with manufacturers feeling the pinch of a bear market and rising energy prices. Despite a general fall in the crypto-mining sector, there are still a few positives in the market, such as Digihost, which was declared debt-free and cash-flow positive.

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