Core Scientific Reveals Plan to Emerge from Bankruptcy
Bitcoin (BTC) miner Core Scientific has unveiled its strategy to exit bankruptcy in early January 2024. The company’s presentation, which includes an audio commentary by CEO Adam Sullivan, is based on the third amended joint Chapter 11 plan filed on Nov. 16.
Separate Plans for Common Shareholders and Noteholders
The plan outlines separate arrangements for common shareholders and holders of convertible notes. Common shareholders will receive new shares at a ratio of 25:1, equating to $1.08 per pre-exchange share. Meanwhile, noteholders will receive $1.628 for every $1 of face value for April notes and $1.201 per $1 face value for August notes. These payouts are scheduled for Jan. 3, 2024.
Financial Outlook and Debt Management
If Core Scientific successfully negotiates with key shareholders, it will emerge from bankruptcy on Jan. 5, 2024, with $709 million in net debt and $791 million in equity value. Over the course of 2025, only $46 million in debt will mature.
Hot Take: Core Scientific Sets Course for Recovery
Core Scientific’s plan to emerge from bankruptcy signals a positive trajectory for the company. By outlining separate arrangements for common shareholders and note holders, the company aims to provide fair compensation to all parties involved. With a solid financial outlook and manageable debt obligations, Core Scientific is poised to regain stability and continue its operations in the crypto mining industry.
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