Core Scientific reorganization plan confirmed by bankruptcy court

Core Scientific (CORZQ) announced the United States Bankruptcy Court for the Southern District of Texas has confirmed the company’s Chapter 11 plan of reorganization. The Bankruptcy Court’s approval of the Plan clears the way for Core Scientific to emerge and re-list on Nasdaq by the end of January 2024. Under the terms of the Plan, shareholders as of the anticipated record date of January 23, 2024 will receive shares of the company’s new common stock and warrants, constituting approximately 60% of the company’s new equity following exercise of the warrants issued to existing shareholders and including new shares issued as part of the equity rights offering. Assuming the cash exercise of all applicable warrants, and the cash is used to pay down debt, the company’s existing debt would be paid in full, a reduction of approximately $1B from its debt balance prior to the Plan. Plan approval comes shortly after the company announced it had fully paid off its DIP financing and successfully completed an oversubscribed $55M Equity Rights Offering. “Today’s plan confirmation is a defining moment in our reorganization; we’re poised to emerge by the end of this month as an even stronger company, with a highly motivated team that is aligned for success. With demand for Bitcoin and high-value compute continuing to rise, we look forward to creating value for our shareholders as we execute our growth plan, de-lever our balance sheet and deliver superior efficiency at scale,” said Adam Sullivan, Core Scientific Chief Executive Officer.