Core Files Full Chapter 11 Reorg Plan with Exit Timetable

If everything proceeds as scheduled, the plan is set to take effect between Jan. 2 and Jan. 13.

Core Scientific has submitted its third Chapter 11 restructuring plan, complete with a detailed timetable, aiming to exit the bankruptcy protection proceedings as soon as possible.

The bitcoin mining company lodged the updated plan on Monday, aligning with the key terms established with equity and convertible noteholders in a Restructuring Term Sheet, as previously reported.

Core Scientific 3rd Reorganization Paln

The envisaged timeline anticipates the plan to become effective between Jan. 2 and Jan. 13, contingent on several preconditions, including securing sufficient votes by Dec. 13 from its Key Stakeholder Groups.

These groups comprise convertible noteholders, equity holders, secured miner financing lenders, the committee of unsecured creditors, and B. Riley, the debtor-in-possession lender and the largest holder of general unsecured claims. As of now, these five groups remain in divergent positions.

Core Scientific has clarified that the reorganization plan lacks support from B. Riley and the committee of unsecured creditors. The company said it intends to persist in negotiations with these two groups for a comprehensive settlement. The committee of unsecured creditors states in the filing its non-confirmation stance on the plan, urging general unsecured creditors to vote against it.

Meanwhile, Core Scientific has significantly revised down its revenue and gross margin projections for 2024 and the subsequent years, as illustrated in the chart below.

As previously reported, the diminishing market share stemming from restricted growth plans during the ongoing bankruptcy proceedings has led to a decline in Core’s bitcoin mining revenues.

Bitcoin miner image via Core Scientific