• Core Scientific has received permission from the bankruptcy court to borrow up to $70 million from B. Riley.
• The new credit facility will replace an existing one that was extended by B. Riley in December 2022.
• The U.S. Bankruptcy Court for the Southern District of Texas has granted Core Scientific the green light to go ahead with a $70 million credit facility from middle market investment bank B. Riley.

Core Scientific, the popular crypto miner that filed for bankruptcy in December 2022, has been granted permission from the U.S. Bankruptcy Court for the Southern District of Texas to secure a new $70 million credit line from middle market investment bank B. Riley. This credit line will replace an existing one that was extended by B. Riley in December 2022.

The new credit facility will provide the company with much needed liquidity during its chapter 11 bankruptcy proceedings. In order to secure the loan, Core Scientific requested an emergency hearing at the bankruptcy court to enable them to replace the existing credit facility with B. Riley. After the hearing, the court granted the company permission to go ahead with the new credit line.

The loan will be made 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. Core Scientific intends to use the new credit line to settle the existing debtor-in-possession (DIP) facility with the investment bank.

The filing further revealed that the company’s shareholders are on board with the plan to replace the existing credit facility in favor of the new arrangement. Core Scientific reportedly stated that the Replacement DIP Facility was the result of „extensive marketing and hardfought negotiations with numerous potential lenders“.

The company has expressed its confidence that the new credit line will provide it with the necessary liquidity to successfully navigate its chapter 11 bankruptcy proceedings and emerge from bankruptcy with a healthy financial footing.