Core Scientific May Reach Restructuring Plan In September
- The Core Scientific advisor said the mining company could reach its reorganization plan on September 25.
- The bankruptcy judge said the company should shorten the restructuring schedule by “at least a month” because creditors have called on the company to speed up its exit from Chapter 11 of the bankruptcy law.
- The firm’s advisor argued that it took more time to draft a business plan to adapt to the changing realities of the volatile crypto-mining landscape.
Core Scientific said it could reach its restructuring plan in September after being urged by creditors for fear that the company’s bankruptcy proceedings would take longer than expected.
Core Science’s bankruptcy judge said at Monday’s hearing that the company should shorten its restructuring timetable by at least a month as creditors have urged the company to speed up its exit from bankruptcy proceedings according to Chapter 11.
Core Scientific’s attorney said the company could reach its restructuring plan by September 25.
The company’s creditors have argued for months over the mining company’s bankruptcy proceedings. The proceedings, which began in December 2022, were expected to last just six months but are likely to last for more than a year – a fact that has left some creditors on the company’s long list to worry.
However, the Core Scientific advisor argues that it takes more time to draft a business plan that adapts to the changing reality of the volatile crypto-mining landscape that has seen the price of Bitcoin and hash rate increase as electricity prices fall.
Ronit Berkovich, an attorney representing the debtors, said a confluence of those factors made mining more profitable, allowing Core Scientific to generate more revenue to pay off its $6 million debt.
Once the crypto industry’s biggest miner, Core Science suffered a rapid collapse last November when the bitcoin price tumbled amid the crypto exchange scene. FTX’s death exploded in mid-November. The company went public with a $4.3 billion valuation in 2021, but its market capitalization had dropped to $78 million by the time it filed for bankruptcy last December.
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