Cryptocurrency mining firm Core Scentific has agreed with B. Riley for a $70 million renewal loan.
B. Riley stepped in to save the cryptocurrency mining firm Core Scentific, which declared bankruptcy. A $70 million loan has been agreed with B. Riley.
Core Scentific and B. Riley Agree for Loan
Bankrupt Bitcoin miner Core Scientific has reached a new $70 million loan agreement with B. Riley.
According to a January 30 filing, the company has asked the court to approve financing that replaces the $75 million in debt-in-hand (DIP) loan Core Scentific received from shareholders as part of its prearranged bankruptcy settlement.
Miner said that the special purpose shareholders committee supports the entry of Borrowers into the Substitute DIP Vehicle and the repayment of the Original DIP Vehicle prior to final approval.
The deal will give Core Scientific up to 15 months of track and significant flexibility because there are no milestones associated with the plan and it does not require approval of any particular Chapter 11 plan.
The hearing date, previously scheduled for a final hearing for the original DIP loan, is next Wednesday.