Core Scientific asks court to extend restructuring to September

The mining company Core Scientific submitted to the bankruptcy court an updated restructuring plan, projected through September 2023.

The firm noted that extending the process by four months is necessary due to changing market conditions. Among the latest factors for Core Scientific were:

• Bitcoin price rose (by 61% since filing for bankruptcy in December 2022);
• lower electricity tariffs (by 24%);
• increase in network hash rate (by 54%).

The first two factors have had a positive impact on the company’s mining business. Hashprice rose from $0.06/TH/s to $0.08/TH/s — about 30%.

\”These conditions have also led to the debtor’s liquidity improving since the petition was filed,\” said Core Scientific.

Under the revised plan, the firm expects to complete the restructuring with an additional cash inflow of $46 million. The figure accounts for the repayment of all obligations to investors and creditors.

Earlier, they agreed to provide Core Scientific with a loan of $37.5 million after filing for insolvency.

In February, the company reached an agreement with investment bank B. Riley to obtain a loan of $70 million on more favourable terms.