- Core Scientific is seeking emergency relief from the bankruptcy court in order to secure a replacement debt facility.
- According to court documents, the miner hired investment banking firm B.J. Has agreed to a $70 million credit facility with Riley.
- The company will use the funds to pay down existing debt to avoid default.
Core Scientific, A bitcoin mining The firm, which filed for Chapter 11 bankruptcy in December last year, says it is B. Agreed to a $70 million financing facility with Riley Commercial Capital, LLC.
Court documents bitcoin miner filed revealed on Tuesday that the crypto company is looking to access a loan facility from the investment bank to pay off existing debtors (DIP) facility.
Core Scientific seeks emergency relief
Minor seeks emergency relief from the bankruptcy court, which it says is needed no later than 11:30 a.m. CET on Wednesday, February 1, 2023. As mentioned in the filing, the crypto miner will by default be under the terms of the Basic DIP facility.
The core scientific team says that if approved, the first part of the facility will cost $35 million before the rest follows. Securing the new credit facility from B. Riley is critical for the miner to continue its operations as it navigates its bankruptcy process.
The past year proved particularly brutal for crypto mining companies, with plummeting bitcoin prices and rising energy costs hurting business. Core Scientific was one of the largest miners seek bankruptcy protection The price of bitcoin fell once again after the explosion of crypto exchange FTX.
At the time of the bankruptcy filing, Core Scientific disclosed liabilities of $1 billion to $10 billion.