Mining company Core Scientific intends to emerge from bankruptcy proceedings in mid-to-late January 2024.
See more
Core Scientific has reached an agreement in principle on terms of Chapter 11 Global Plan Settlement with all key stakeholders. In addition, the deadline for participating in the Equity Rights Offering has been extended to Thursday, December 28, 2023.
See full press release here:… pic.twitter.com/PFo7Pme2VN
— Core Scientific (@Core_Scientific) December 21, 2023
According to a press release, the company has reached an agreement in principle with interested parties on the distribution of convertible notes and shares. After that, it is expected to relist on the Nasdaq exchange.
Under the plan, shares will be exchanged at a ratio of 25:1, yielding $1.08 each. Noteholders will receive $1.628 per $1 face value of the convertible notes due in April 2024 and $1.201 per $1 face value of the convertible notes due in August 2024.
In October 2022, the company warned that it could run out of cash reserves and cash equivalents before the end of the year. The miner cited a decrease in the price of Bitcoin, an increase in electricity tariffs and an increase in hashrate. Liquidity was also pressured by legal costs and the bankruptcy of one of its largest hosting clients, Celsius Network.
In the third quarter of that year, Core Scientific recorded a loss of $434.8 million. In its November report, the company again expressed doubts about its ability to continue operations without additional liquidity.
Core Scientific filed for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code in December. A group of creditors later agreed to lend her $37.5 million.
In February 2023, the company agreed with the investment bank B. Riley to receive a loan of $70 million on more favorable terms.
Let us recall that in September Bitmain agreed to invest $53.9 million in Core Scientific as part of a contract for the supply of 27,000 devices for bitcoin mining.
Subscribe to ForkLog on social networks
Found an error in the text? Select it and press CTRL+ENTER
ForkLog newsletters: keep your finger on the pulse of the Bitcoin industry!
2023-12-22 16:48:22
#Core #Scientific #outlined #time #frame #exiting #bankruptcy #ForkLog
