- The reason was more favorable market conditions
- The company will review the reorganization plan
- It will be ready by September 25th
Legal Counsel Core Scientific plans develop a plan for the reorganization of the company by September 25. This follows from the court documents presented at yesterday’s meeting.
Miner cancels bankruptcy as “liquidity situation has improved significantly.” The reason for this was the reduction in electricity costs, the growth of the BTC rate and its hash rate. These market factors helped improve the company’s balance sheets.
Now they will make an extended plan to pay off all their debts. Core Scientific estimates that they will have an additional $46 million due to a more favorable market. This money can be used to pay off debts and operations (that is, to mine bitcoins).
By the way, Core Scientific did not stop their activities. After all, Article 11 bankruptcy allows the candidate to continue working until the liquidation plan is implemented.
The miner is also counting on “unexpected” profits from the Celsius Network. It turned out that the crypto lender owed them $11 million for the electricity they used. The companies are currently litigating the matter.
Core Scientific is also actively negotiating with all shareholders and creditors. They want to find a consensus on how the company will operate after it exits bankruptcy proceedings.