Holders of the allowed debtor-in-possession claims (DIP) for
the bankrupt Bitcoin miner Core Scientific will receive full and final
satisfaction of their claims, the company said in a joint Chapter 11 plan
filed yesterday (Tuesday).
Filed before a bankruptcy court in Texas, the company said its
liquidity had increased since it sought Chapter 11 bankruptcy protection last December. It attributed the increase to improved Bitcoin prices, an
increase in Bitcoin network hash rate , and a reduction in mining cost.
The holders of the DIP claims will get full payment in
cash or other agreed payment alternatives, the plan noted. Moreover, any liens granted to secure
the allowed DIP claims would be terminated, removing the secured interest over
the company’s assets. Chapter 11 bankruptcy protection allows a business to
continue operating while it reorganizes its debt.
In May, the federal
judge overseeing the proceeding, Judge David Jones of the Southern
District of Texas, said that Core Scientific should fast-track its plans to
emerge from the bankruptcy
