Core Scientific announces its latest bankruptcy plan, which if approved will take effect on January 5 next year

Bitcoin mining company Core Scientific has released a report outlining its plan to exit bankruptcy proceedings in early January 2024. The report is based on the third amended joint bankruptcy plan submitted on November 16th and includes audio commentary from CEO Adam Sullivan. Common stockholders and holders of two convertible notes will receive compensation. Common stockholders will receive new shares at a 25:1 exchange ratio. Holders of notes due in April will receive $1.628 per $1 face value, while holders of notes due in August will receive $1.201 per $1 face value. These funds will be distributed on January 3rd, 2024.

If an agreement is reached with major shareholders, Core Scientific will exit bankruptcy proceedings on January 5th, 2024, with a net debt of $709 million and equity value of $791 million, with only $46 million in debt due to mature in 2025.

Shareholders can vote on the plan until December 13th, and the decision will be made by the Southern District of Texas Bankruptcy Court on December 22nd. If approved, the plan will take effect on January 5th, 2024. (Cointelegraph)