• Core Scientific has received permission from the U.S. Bankruptcy Court for the Southern District of Texas to borrow up to $70 million from B. Riley to replace an existing credit facility that was extended in December 2022.
• The new credit facility will provide an aggregate principal amount of $35 million on an interim basis in a single borrowing and the remaining amount from the original $70 million will be available in one or more borrowings.
• The new credit line is intended to provide liquidity to Core Scientific during the chapter 11 proceedings.

Core Scientific, a crypto miner that filed for bankruptcy in December 2022, has been granted permission by the U.S. Bankruptcy Court for the Southern District of Texas to borrow up to $70 million from B. Riley. The loan will replace an existing credit facility that the bankrupt crypto miner had secured from the investment bank in December 2022.

The new credit facility will provide an aggregate principal amount of $35 million on an interim basis in a single borrowing. The remaining amount from the original $70 million will be available in one or more borrowings. Core Scientific had requested the bankruptcy court to schedule an emergency hearing to allow the replacement of the credit facility with B. Riley.

The court filing revealed that the mining firm intends to use the new credit line to settle the existing debtor-in-possession (DIP) facility with the investment bank. According to Core Scientific, the new credit facility was the result of extensive marketing and hard-fought negotiations with numerous potential lenders. Furthermore, the company’s shareholders supported the plan to replace the existing credit facility in favor of the new arrangement.

The new credit line is intended to provide liquidity to Core Scientific during the chapter 11 proceedings. The company will use the loan to pay off the original DIP facility, as well as other expenses to allow the miner to remain in operation during the bankruptcy proceedings.

Core Scientific has stated that the new credit facility is expected to provide the company with additional liquidity and flexibility, and will enable it to continue its mining operations and focus on emerging opportunities in the cryptocurrency industry. The company is currently in the process of negotiating a plan of reorganization with creditors, and the new credit facility will provide Core Scientific with the necessary resources to continue operations while the reorganization is finalized.