Core Scientific receives extension of exclusive plan periods

By Sarah Lizee

Olympia, Wash., Oct. 23 – Core Scientific, Inc. received a shorter-than-requested extension of its exclusive periods to file and solicit votes on a Chapter 11 plan, according to an order filed Friday with the U.S. Bankruptcy Court for the Southern District of Texas.

Specifically, the court extended the exclusive filing period through Oct. 17 from July 19 and the exclusive solicitation period through Dec. 18 from Sept. 17.

As previously reported, the company asked the court to extend the exclusive plan filing period by 60 days through Dec. 16 and the exclusive solicitation period by 60 days through Feb. 16.

The company has spent the last several months participating in mediation, which resulted in an agreement in principle between the debtors, an informal group of noteholders and the official committee of equity holders regarding the terms of a Chapter 11 plan.

The mediation has been extended to Oct. 31, with the possibility of a further extension, to facilitate the resolution of open issues and documentation of the mediated settlement.

Core Scientific said it is not sure whether its debtor-in-possession lender or the official committee of unsecured creditors support the updated plan.

“To maximize value for all stakeholders, it is imperative that the exclusive periods be further extended to permit the debtors to continue to lead the Chapter 11 plan process without the risks, costs, and disruption that would result from a competing process,” the company said in the extension motion.

Core Scientific is an Austin, Tex.-based Bitcoin mining company that filed bankruptcy on Dec. 21, 2022 in the U.S. Bankruptcy Court for the Southern District of Texas under Chapter 11 case number 22-90341.

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