According to Cointelegraph, Core Scientific, a bankrupt Bitcoin (BTC $28,927) mining platform filed its Chapter 11 bankruptcy plan.
Sources revealed that the plan was filed in the United States Bankruptcy Court for the Southern District of Texas Houston Division. Supposedly the plan mentioned that the firm was “seeking to build as much consensus as possible” about the new Core Scientific and how it would look after recovering from its bankruptcy state, Cointelegraph added.
It is expected that the holders of allowed debtor-in-possession (DIP) will either receive full cash payment or any alternative treatment. Any claims made to secure the DIP claims will also be ended and the interest of the company’s assets will be removed, Cointelegraph highlighted.
As reported by Cointelegraph, Core Scientific filed for bankruptcy on December 21, 2022, due to falling revenue amid low BTC prices. Furthermore, the complain came after a creditor offered to help Core Scientific for avoiding bankruptcy, Cointelegraph concluded.
(With insights from Cointelegraph)