Core Scientific Finalizes Global Settlement Agreement, Will Emerge from Bankruptcy in January
Crypto miner Core Scientific will emerge from bankruptcy in January, according to a press release from the company on Thursday.
According to Thursday’s statement, the crypto miner has “reached an agreement in principle with all key stakeholders on the terms of a global settlement for all of its chapter 11 cases.”
The announcement marks the end of a tedious bankruptcy process that began in December 2022 for the Austin-based company, which cited low bitcoin prices, revenue, and a $7 million unpaid debt from Celsius Network as the reason for the filing.
“The global settlement removes key hurdles to our anticipated emergence from Chapter 11 in January,” said Adam Sullivan, Core Scientific’s Chief Executive Officer. “With our team highly focused on operational excellence, a post-emergence pathway to de-lever our balance sheet, and a plan for continued growth in 2024 and beyond, we are excited to pursue the opportunities ahead of us in the new year.”
News of the settlement comes just a few months after Celsius Network and Core Scientific reached a settlement following an acrimonious legal battle regarding unpaid fees in September, with Core Scientific agreeing to sell Celsius Network their $14 million Cedarvale mining site as well as release all claims against the crypto lender.
“After months of negotiations, Celsius and Core have now consensually resolved their long-running disputes and agreed to a global settlement that will fully resolve this litigation,” a September court filing reads.
For their part, Celsius Network, which was once estimated to be a $3 billion enterprise, was forced to stop all customer withdrawals due to “extreme market conditions.”
Just one month later, the troubled crypto lender filed for bankruptcy in
Read more on cryptonews.com
