Core Scientific Files Third-Amended Bankruptcy Recovery Plan with Timeline

According to CryptoPotato, Bitcoin mining firm Core Scientific has filed a disclosure statement for its third-amended bankruptcy recovery plan, which includes key terms from its Restructuring Term Sheet filed in late October. The new filing outlines a timeline for gaining support from key stakeholders and emerging from bankruptcy before January 15, 2024. The debtors plan to move forward quickly with gathering votes and confirming the plan to minimize administrative costs. A hearing on the conditional approval of Core Scientific's plan will take place on Tuesday. Holders of claims or interest will have until December 13 to vote on the plan, with another hearing to confirm final approval of the disclosure statement on December 22. The plan is set to go effective between January 2 and January 13, 2024. Multiple stakeholders are involved in the voting process, including convertible noteholders, secured mining finance lenders, the committee of unsecured creditors, equity holders, and investment bank B. Riley, the largest holder of unsecured claims in the company. Core Scientific's plan values the company at $1.5 billion and aims to significantly reduce its debt while preserving over 240 jobs. The plan includes issuing $150 million in new notes and $260 million in new convertible notes. The new notes will carry a 12% interest rate and will mature four years after the plan becomes effective. Convertible notes give Core the option to repay creditors at either 10% in cash or at 6% in cash and another 6% in common stock, maturing in five years. The bankruptcy plan currently lacks support from both the committee of unsecured creditors and B. Riley. Core Scientific intends to continue negotiating with both parties to try and reach a global settlement. If any class votes to reject the plan, the debtors will seek confirmation of the plan over such rejection under the 'cramdown' provisions of the Bankruptcy Code.