Core Scientific Reveals Its Most Recent Bankruptcy Plan Ahead Of Court Date

With a goal of emerging on January 5, 2024, Core Scientific reveals its bankruptcy escape strategy and offers special terms to note holders and customers.
Core Scientific Reveals Its Most Recent Bankruptcy Plan Ahead Of Court Date

The Bitcoin mining business Core Scientific has released a presentation outlining its plan to file for bankruptcy in January 2024. CEO Adam Sullivan’s opinion is included in the plan, which is based on the third revised joint Chapter 11 plan filed on November 16.

Different treatment is given to holders of two series of convertible notes and common shares under this strategy. Following the exchange, common owners will get new shares at a 25:1 ratio, which equates to $1.08 per share prior to the transaction.

For every $1 of the notes’ face value held by investors, they will get $1.628. These notes have an April maturity date. Note holders whose notes mature in August, however, will get $1.201 for every $1 face value. The dates of these payments are scheduled for January 3, 2024.

With $709 million in net debt and $791 million in equity value, Core Scientific will emerge from bankruptcy on January 5, 2024, assuming successful negotiations with important shareholders. Through 2025, just $46 million in debt is scheduled to mature.

Shareholders can vote on the proposal through December 13 at the latest. The plan will then be decided by the Southern District of Texas Bankruptcy Court by December 22.

With a combined operating capacity of 724 megawatts, Core Scientific has seven sites spread across five states. By the conclusion of the fiscal year 2027, the business intends to enhance this capacity by 372 megawatts. Revenue has increased from $583 million in 2024 to $968 million in 2027.

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