TechFlow news: Bitcoin mining company Core Scientific has filed for Chapter 11 bankruptcy protection with the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division, and has received court approval. Since filing for bankruptcy protection, the company has improved its liquidity and is now focusing on transforming its business plan to achieve a successful comeback.
Chapter 11 bankruptcy is a measure that allows a company to continue operating while stakeholders negotiate a restructuring plan. During this process, the company may downsize operations, reduce debt, or liquidate assets to repay creditors. A Chapter 11 bankruptcy plan is a formal document outlining how the company intends to restructure and repay its creditors.
Core Scientific stated it has obtained approval from the Bankruptcy Court for the Southern District of Texas to secure up to $70 million in financing from investment bank B. Riley to repay existing debtor-in-possession loans, which were also provided by B. Riley.
