publicly traded tangled bitcoinsBTC/USD) Minor Core Scientific (NASDAQ: CORZ) Investment Bank b. Texas is seeking approval from the Bankruptcy Court for the Southern District of Houston Division for the $70 million loan from Riley.
If approved, the loan would replace a financing plan that BTC miners presented through the Chapter 11 bankruptcy process in December last year.
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buying time out of tough times
In addition to enabling miners to pay off existing debtors (DIPs) facility, it will also provide miners with a 15-month window and significant flexibility.
The Core Scientific downfall comes on the heels of last year’s crypto meltdown, which saw bitcoin prices plummet, and with it, the bitcoin mining industry. Bitcoin miners in the third quarter of 2022 Recorded a loss of $434 million,
The company proceeded to file for bankruptcy protection in December with liabilities of $10 billion and 1,500 to 5,000 creditors. At the time of filing for Chapter 11 bankruptcy, Core Scientific owned about 10% of the computing power. bitcoin blockchain,
loan details
According to Core Scientific, debt:
“Includes economic terms that are fair and generally superior to those provided under the original DIP facility … The replacement DIP facility lays the foundation on which the debtor will seek to negotiate an agreeable Chapter 11 plan with all of its principal constituents.” and maximize value for all stakeholders.”
The loan application is to be heard on February 1.
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