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Core Scientific is emerging from Chapter 11 bankruptcy and will relist its shares. After a U.S. court confirmed its reorganization plan, mining company Core Scientific announced its readiness to exit bankruptcy proceedings. Core Scientific CEO Adam Sullivan said the confirmation of the plan is a defining moment of the company. “With demand for Bitcoin and high-value compute continuing to rise, we look forward to creating value for our shareholders as we execute our growth plan, de-lever our balance sheet and deliver superior efficiency at scale.” Adam Sullivan, Core Scientific CEO The press release notes that under the reorganization plan, shareholders will receive approximately 60% of Core Scientific’s new share capital, and the company will fully repay its debt. The mining firm also said it plans to relist on the Nasdaq exchange by the end of January 2024. In November 2022, the company warned of a possible depletion of cash reserves and cash equivalents before the end...

In a recent legal development, a judge has ruled that Digital Currency Group is prohibited from making ownership changes within Genesis until DCG successfully exits bankruptcy. This decision safeguards Genesis under DCG’s tax consolidated group, granting specific benefits to the crypto lender amidst its bankruptcy status. The protective benefits will remain in force until the effective date of a Chapter 11 plan or if the bankruptcy transitions to a Chapter 7 case, resulting in business liquidation. Genesis, arguing its case since late November, emphasized the necessity of DCG maintaining a stake above 80% to preserve the potential value of its holding company’s interest in the federal net operating loss (NOL) carryforwards of the DCG Group. You might also like: DCG and Genesis reach landmark settlement over bankruptcy Net operating loss carryforwards serve as a tax advantage, enabling Genesis to deduct losses from future profits. Genesis, estimating over $700 ...

Genesis agrees to a $33 million settlement with Three Arrows Capital, significantly less than the original $1 billion claim, amid ongoing crypto turmoil. Bankrupt crypto lender Genesis has consented to a settlement with the now-defunct crypto hedge fund Three Arrows Capital (3AC), culminating in a $33 million payment against a staggering $1 billion claim . This development, revealed through court documents, underscores the volatility and the inherent risks in the crypto market. The settlement, a product of “extensive negotiations,” is still pending approval from a New York bankruptcy court. The downfall of 3AC in June 2022 heralded a prolonged period of instability in the crypto sector, aptly termed a crypto winter. The claims against Genesis, which succumbed to bankruptcy in January, pertain to transactions preceding its financial collapse. You might also like: Genesis ordered to comply with subpoena in TerraUSD collapse case Notably, the agreement entails a...