Core Scientific Asks Court to Extend Restructuring Until September
Core Scientific has submitted a revised plan of reorganization for approval to the bankruptcy court, scheduled through to September 20 2023.
The extension of four months from the date of initial submission was attributed to major changes in the market, including a 61% surge in Bitcoin prices since declaration of bankruptcy in December 2022, a 24% decline in electricity costs and a 54% rise in mining hashrates.
These changes consequently increased liquidity for the company, with a boost to its mining business hashrate of 30% from $0.06/TH/s to $0.08/TH/s.
Core Scientific has stated that the updates to the plan include an additional injection of $46 million, to cover the complete repayment of all their debts to creditors and investors.
In addition to the $37.5 million already agreed upon by investors pre-declaration of bankruptcy, the company have also come to an arrangement with investment bank B.Riley for an additional $70 million loan on more beneficial terms.