- More favorable market conditions were the reason
- The company will revise its reorganization plan
- It will be ready by Sept. 25
The Core Scientific legal advisor plans to develop a reorganization plan for the company by Sept. 25. This follows court documents presented at yesterday’s hearing.
Miner cancels bankruptcy because “the liquidity situation has significantly improved.”. The reason for this was a decrease in energy costs, the growth of the BTC rate and its hash rate.
These market factors have improved the company’s balance sheets.
They will now make an extended repayment plan for 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 repay debts and operational activities (i.e., bitcoin mining).
By the way, Core Scientific did not stop its activities. After all, a Section 11 bankruptcy allows a candidate to continue working until a liquidation plan is implemented.
Miner is also counting on the “windfall” profits from Celsius Network. It turned out that the cryptocurrency lender owes them $11 million for the electricity used. The companies are now in litigation over the issue.
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 emerges from bankruptcy.
They want to find a consensus on how the company will operate after it emerges from bankruptcy proceedings.