Core Scientific Bankruptcy Could Be Lifted As Early As 2024
Key Points:
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Cryptocurrency miner Core Scientific expects to exit bankruptcy in January 2024 after reaching a global settlement with key stakeholders.
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The Austin-based company secured preliminary agreements with major parties, facilitating a consensual reorganization plan and hastening Core Scientific bankruptcy exit from Chapter 11.
Core Scientific is poised to emerge from bankruptcy in mid-to-late January, following a challenging period marked by the drop in Bitcoin prices and escalating energy costs for mining.
Core Scientific Nears Exit from Bankruptcy Through Global Settlement
Core Scientific bankruptcy last year, exacerbated by debt owed by Celsius Network, a major client in the US cryptocurrency loan industry, had significant ripple effects on the market.
Core Scientific CEO Adam Sullivan revealed that a preliminary agreement with key stakeholders, including the Ad Hoc Noteholders Group, Unsecured Creditors Committee, Equity Committee, and B. Riley (the Company’s Debtor in Possession lender), has been reached. This global settlement, described by Sullivan as a critical milestone, paves the way for a consensual plan of reorganization and expeditious exit from Chapter 11.
Read more: Bitcoin Miner Core Scientific Files For Chapter 11 Bankruptcy Plan
Core Scientific Bankruptcy Exit Roadmap for Growth and Operational Excellence
Sullivan emphasized that the resolution removes key hurdles for the company’s anticipated emergence from Chapter 11 in January. With a renewed focus on operational excellence, a post-emergence strategy to de-lever the balance sheet, and growth plans for 2024 and beyond, Core Scientific looks forward to a promising future.
To facilitate final updates to the Core Scientific bankruptcy Chapter 11 Plan and Disclosure Statement, the company plans to request a modification of certain court dates and deadlines. It anticipates filing a motion for the Court’s approval, seeking extensions related to voting on the plan, and filing objections.
In conjunction with the global settlement, the deadline for participation in the Equity Rights Offering has been extended to December 28, 2023. Core Scientific aims to conclude its restructuring process and reposition itself for growth as it navigates the evolving cryptocurrency landscape in the coming year.
DISCLAIMER:Â The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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Core Scientific Bankruptcy Could Be Lifted As Early As 2024
Key Points:
-
Cryptocurrency miner Core Scientific expects to exit bankruptcy in January 2024 after reaching a global settlement with key stakeholders.
-
The Austin-based company secured preliminary agreements with major parties, facilitating a consensual reorganization plan and hastening Core Scientific bankruptcy exit from Chapter 11.
Core Scientific is poised to emerge from bankruptcy in mid-to-late January, following a challenging period marked by the drop in Bitcoin prices and escalating energy costs for mining.
Core Scientific Nears Exit from Bankruptcy Through Global Settlement
Core Scientific bankruptcy last year, exacerbated by debt owed by Celsius Network, a major client in the US cryptocurrency loan industry, had significant ripple effects on the market.
Core Scientific CEO Adam Sullivan revealed that a preliminary agreement with key stakeholders, including the Ad Hoc Noteholders Group, Unsecured Creditors Committee, Equity Committee, and B. Riley (the Company’s Debtor in Possession lender), has been reached. This global settlement, described by Sullivan as a critical milestone, paves the way for a consensual plan of reorganization and expeditious exit from Chapter 11.
Read more: Bitcoin Miner Core Scientific Files For Chapter 11 Bankruptcy Plan
Core Scientific Bankruptcy Exit Roadmap for Growth and Operational Excellence
Sullivan emphasized that the resolution removes key hurdles for the company’s anticipated emergence from Chapter 11 in January. With a renewed focus on operational excellence, a post-emergence strategy to de-lever the balance sheet, and growth plans for 2024 and beyond, Core Scientific looks forward to a promising future.
To facilitate final updates to the Core Scientific bankruptcy Chapter 11 Plan and Disclosure Statement, the company plans to request a modification of certain court dates and deadlines. It anticipates filing a motion for the Court’s approval, seeking extensions related to voting on the plan, and filing objections.
In conjunction with the global settlement, the deadline for participation in the Equity Rights Offering has been extended to December 28, 2023. Core Scientific aims to conclude its restructuring process and reposition itself for growth as it navigates the evolving cryptocurrency landscape in the coming year.
DISCLAIMER:Â The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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