Core Scientific asks for another 90-day exclusivity extension

By Sarah Lizee

Olympia, Wash., July 19 – Core Scientific, Inc. is seeking another 90-day extension of its exclusive periods to file and solicit votes on a Chapter 11 plan, according to a motion filed Tuesday with the U.S. Bankruptcy Court for the Southern District of Texas.

Specifically, the company asked the court to extend the exclusive plan filing period through Oct. 17 from July 19 and the exclusive solicitation period through Dec. 18 from Sept. 17.

The company filed a plan and disclosure statement on June 20.

The plan allows the debtors to move forward under either a consensual path or a nonconsensual, cram-up, path. Either way, the plan provides for 100% recoveries to all classes of creditors and for all residual equity value to be distributed to equity and holders, if any, of allowed subordinated section 510(b) claims.

The company said it is focused on reaching as much consensus as possible leading up to and after mediation that is scheduled to start on July 26.

Core Scientific said all key stakeholder groups have agreed to participate in the mediation.

The company said the biggest challenge to reaching global consensus will be bridging the gap with the informal noteholder group regarding the appropriate allocation of value among secured creditors, unsecured creditors and existing equity holders in a solvent-debtor case where there is material residual value available for equity holders after repaying all creditors in full.

Core Scientific is an Austin, Tex.-based Bitcoin mining company. The company filed bankruptcy on Dec. 21, 2022 under Chapter 11 case number 22-90341.

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