Analysis of Core Scientific's Bankruptcy

For an overview of the Chapter 11 process, please see The Block Research's Voyager Digital: A Breakdown of their Chapter 11 Filing. On December 20, 2022, Core Scientific voluntarily filed for Chapter 11 bankruptcy protection following their poor public equity and underlying operational performance. For an overview of Core Scientific's operations, please see The Block Research's Analysis of Core Scientific’s Potential Bankruptcy. 

As part of their Chapter 11 process, Core Scientific entered into a Senior Secured Super-Priority Debtor-in-Possession Loan and Security Agreement dated December 22, 2022. The DIP loan classified as the “New Money DIP Facility” will provide an initial aggregate principal amount of up to $75mm. ~$57mm is currently committed, including BlackRock agreeing to $12mm. $37.5mm will be available following Bankruptcy Court approval on an interim basis, with an additional $37.5mm available following Bankruptcy Court approval on a final basis, subject to obtaining the remaining $18mm commitment for the full amount of the New Money DIP Facility.