Core Scientific, a provider of blockchain computing data centers and software solutions, pre-paid the outstanding balance on a debtor-in-possession financing package provided by B. Riley Financial, the company’s DIP lender. The company retains access to the full $35 million of available funding under the DIP financing package and is aiming to emerge from bankruptcy in mid-to-late January. Emergence.
“Our team continues to deliver outstanding performance, which translates into continued market leadership and strong cash flow generation,” Adam Sullivan, CEO of Core Scientific, said. “Paying off our DIP financing package at this point in the emergence process is an exceptional achievement that underscores the strength of the organization and positions us well for our planned emergence later this month.”
Core Scienftic provided an estimated timeline for its emergence (see below) after the company filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas in December. The company later reached an agreement in principle with all key stakeholders on the terms of a global settlement of its Chapter bankruptcy 11 cases before the end of 2023.
Revised Plan and ERO Timeline
| Event | Illustrative Date/Timing |
| Equity Rights Offering Record Date | Nov. 16, 2023 |
| End of Rights Offering Subscription Period/ Deadline for Funding Rights Offering Subscription Amounts | Jan. 5, 2024 |
| Voting Deadline | Jan. 11, 2024 |
| Currently Scheduled Confirmation Hearing Date | Jan. 16, 2024 |
| Anticipated Plan Distribution Record Date for Existing Convertible Notes | TBD2 |
| Anticipated Plan Effective Date
Anticipated Plan Distribution Record Date for Existing Common Shares |
TBD (expected mid-to-late-January 2024) |
| Nasdaq Listing | Expected at or shortly after emergence |
