Core Scientific has filed a Chapter bankruptcy 11 plan, demonstrating its determination to restructure its operations while meeting its creditors’ demands. The plan was filed in the Southern District of Texas Houston Division of the United States Bankruptcy Court. The proposal was discussed with key stakeholders, and the company is trying to generate as much agreement as possible on how a new Core Scientific might appear after exiting from bankruptcy procedures, according to the filing.
Notwithstanding its present bankruptcy procedures, Core Scientific remains optimistic about its financial health and is focused on reworking its business model in order to achieve a successful return. Higher Bitcoin pricing, greater network hash rate, and lower energy costs were cited as reasons for the company’s better financial performance. According to the bankruptcy plan, holders of approved debtor-in-possession (DIP) claims would get full and final satisfaction of their claims on the bankruptcy plan’s effective date. They will either be paid in full in cash or given alternative therapy as agreed upon. Any lines of credit given to secure DIP claims will also be terminated, removing the secured interest in the company’s assets.
