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Core Scientific to exit bankruptcy by September 2023
After bankruptcy, Core Scientific expects to gain back $46 million following the recent market conditions.
- Bankrupt crypto miner to exit bankruptcy by September this year.
- The latest developments led to a 7% hike in Core Scientific’s share price.
Crypto mining firm Core Scientific is reportedly aiming to conclude its Chapter 11 plan and exit bankruptcy by September this year.
The bankrupt crypto miner revealed in a recent court filing that it expects to exit Chapter 11 proceedings with an extra $46 million, thanks to the recent market conditions.
Core Scientific Share Price Jumps 7%
According to the filing with the Texas Bankruptcy Court, Core Scientific’s lawyers informed the judge that the miner could reach a restructuring plan as soon as September 25, 2023.
This date reportedly also accounts for a three-month extension. The bankruptcy court granted the extension in order for the company to meet its outstanding debt obligations.
The crypto mining firm is scheduled to file a disclosure statement regarding its reorganization plan on June 15, 2023. The last day to object to the plan will be August 30, 2023. There will be a confirmation hearing following this date.
Lawyers representing Core Scientific revealed that the miner’s liquidity position improved considerably since it filed for bankruptcy in December 2022, which led to the reorganization plan.
The filing read as follows,
“The Debtors and their advisors have also commenced the claims reconciliation process to size the general unsecured claims pool to make the confirmation process smoother and increase distributions to stakeholders on the Plan effective date.”
Bankruptcy judge David Jones reportedly urged Core Scientific to expedite its restructuring timeline. The judge asked to cut down the period by one month in order to appease creditors.
According to data from MarketWatch, Core Scientific’s share price has gained more than 7% over the past 24 hours.
At the time of writing, the stock was trading at $0.38. It has gained a whopping 441% since the beginning of 2023. A part of the rally can be attributed to the increase in the price of Bitcoin this year.
