EX-99.3 4 d940250dex993.htm EX-99.3 EX-99.3

Exhibit 99.3

IN THE UNITED STATES BANKRUPTCY COURT

FOR THE SOUTHERN DISTRICT OF TEXAS

HOUSTON DIVISION

 

   §   
In re:    §    Chapter 11
   §   
CORE SCIENTIFIC, INC., et al.,    §    Case No. 22-90341 (CML)
   §   
   §    (Jointly Administered)
Debtors.1    §    Re: Docket No. 1528 and 1536
   §   

NOTICE OF FILING OF SECOND AMENDED PLAN SUPPLEMENT

IN CONNECTION WITH FOURTH AMENDED JOINT CHAPTER 11

PLAN OF CORE SCIENTIFIC, INC. AND ITS AFFILIATED DEBTORS

PLEASE TAKE NOTICE THAT:

1. On December 21, 2022, Core Scientific, Inc. and its debtor affiliates, as debtors and debtors in possession in the above-captioned chapter 11 cases (collectively, the “Debtors”), each commenced a voluntary case under chapter 11 of title 11 of the United States Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the Southern District of Texas (the “Bankruptcy Court”).

2. On November 17, 2023, the Bankruptcy Court entered the Order (I) Scheduling Combined Hearing on (A) Adequacy of Disclosure Statement and (B) Confirmation of Plan; (II) Conditionally Approving Disclosure Statement and Form and Manner of Notice of Conditional Disclosure Statement Hearing; (III) Establishing Solicitation and Voting Procedures; (IV) Establishing Notice and Objection Procedures for Confirmation of Proposed Plan;

 

 

1 

The Debtors in these chapter 11 cases, along with the last four digits of each Debtor’s federal tax identification number, are as follows: Core Scientific Mining LLC (6971); Core Scientific, Inc. (3837); Core Scientific Acquired Mining LLC (6074); Core Scientific Operating Company (5526); Radar Relay, Inc. (0496); Core Scientific Specialty Mining (Oklahoma) LLC (4327); American Property Acquisition, LLC (0825); Starboard Capital LLC (6677); RADAR LLC (5106); American Property Acquisitions I, LLC (9717); and American Property Acquisitions VII, LLC (3198). The Debtors’ corporate headquarters is 210 Barton Springs Road, Suite 300, Austin, Texas 78704. The Debtors’ service address is 2407 S. Congress Ave, Suite E-101, Austin, Texas 78704.

(V) Approving Notice Procedures for the Assumption or Rejection of Executory Contracts and Unexpired Leases; (VI) Approving Notice Procedures for Reinstatement of Claims; (VII) Establishing Rights Offering Procedures; and (VIII) Granting Related Relief (Docket No. 1447) (the “Disclosure Statement Order”), authorizing the Debtors to solicit acceptances for the Third Amended Joint Chapter 11 Plan of Core Scientific, Inc. and Its Affiliated Debtors, filed on November 16, 2023 (Docket No. 1438) (including any exhibits and schedules thereto, the “Third Amended Plan”),2 and approving procedures for soliciting, receiving, and tabulating votes on the Third Amended Plan and for filing objections to the Third Amended Plan.

3. On December 8, 2023, the Debtors filed the Notice of Filing of Plan Supplement in Connection with Third Amended Joint Chapter 11 Plan of Core Scientific, Inc., and Its Affiliated Debtors (Docket No. 1528) (including any exhibits and schedules thereto and as modified, amended, or supplemented, the “Plan Supplement”).

4. On December 11, 2023, the Debtors filed the Notice of Filing of Amended Plan Supplement in Connection with Third Amended Joint Chapter 11 Plan of Core Scientific, Inc. and Its Affiliated Debtors (Docket No. 1536).

5. On December 26, 2023, the Debtors filed the Fourth Amended Joint Chapter 11 Plan of Core Scientific, Inc. and Its Affiliated Debtors (Docket No. 1622) (including any exhibits and schedules thereto and as may be modified, amended, or supplemented, the “Plan”).

6. In accordance with the Plan and Disclosure Statement Order, the Debtors hereby file the following exhibits to the Plan Supplement, which replace and supersede all prior-filed versions of such documents, as applicable:

 

       Exhibit N    Schedule of Allowed General Unsecured Claims

 

2 

Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to such terms in the Plan.

 

2

7. The documents contained in the Plan Supplement, including this amendment, are integral to, and are considered part of, the Plan. These documents have not yet been approved by the Bankruptcy Court. If the Plan is confirmed, the documents contained in this Plan Supplement will be approved by the Bankruptcy Court pursuant to the Confirmation Order.

8. A hearing to consider confirmation of the Plan and final approval of the Disclosure Statement is currently proposed to begin on Tuesday, January 16, 2024 at 10:00 a.m. (Central Time) before the Bankruptcy Court (the “Combined Hearing”), subject to Bankruptcy Court approval. The Combined Hearing may be adjourned from time to time, without further notice other than by filing a notice on the Bankruptcy Court’s docket indicating such adjournment and/or announcement of the adjourned date(s) at the Combined Hearing.

9. Copies of the exhibits contained in this Plan Supplement, and all documents filed in these chapter 11 cases, including the Plan and Disclosure Statement, are available free of charge by visiting https://cases.stretto.com/CoreScientific. You may also obtain copies of the pleadings by visiting the Bankruptcy Court’s website at https://ecf.txsb.uscourts.gov in accordance with the procedures and fees set forth therein.

[Remainder of page intentionally left blank]

 

3

Dated: December 27, 2023

  Houston, Texas

 

Respectfully submitted,
/s/ Alfredo R. Pérez
WEIL, GOTSHAL & MANGES LLP
Alfredo R. Pérez (15776275)

Clifford W. Carlson (24090024)

700 Louisiana Street, Suite 1700

Houston, Texas 77002
Telephone: (713) 546-5000
Facsimile: (713) 224-9511
Email: Alfredo.Perez@weil.com

 Clifford.Carlson@weil.com

-and-
WEIL, GOTSHAL & MANGES LLP
Ray C. Schrock (admitted pro hac vice)

Ronit J. Berkovich (admitted pro hac vice)

767 Fifth Avenue

New York, New York 10153
Telephone: (212) 310-8000
Facsimile: (212) 310-8007
Email: Ray.Schrock@weil.com

 Ronit.Berkovich@weil.com

Attorneys for Debtors

and Debtors in Possession

Certificate of Service

I hereby certify that on December 27, 2023, a true and correct copy of the foregoing document was served by the Electronic Case Filing System for the United States Bankruptcy Court for the Southern District of Texas.

 

/s/ Alfredo R. Pérez

Alfredo R. Pérez

Exhibit N

Schedule of Allowed General Unsecured Claims

Exhibit N

Schedule of Allowed General Unsecured Claims

In accordance with sections 1.10, 1.287, 4.8(b), and 4.9 (b) of the Fourth Amended Joint Chapter 11 Plan of Core Scientific, Inc. and Its Affiliated Debtors (Docket No. 1622) (including any exhibits and schedules thereto, and as may be modified, amended, or supplemented, the “Plan”),1 the Debtors hereby file this schedule of Allowed General Unsecured Claims and Allowed Convenience Claims, which lists the General Unsecured Claims and Convenience Claims to be Allowed on the Effective Date and the amounts in which such Claims are to be Allowed pursuant to the Plan (the “Schedule of Allowed General Unsecured Claims”).

Holders of General Unsecured Claims in Class 8A and Holders of Convenience Claims in Class 8B are advised to carefully review the information contained herein and the related provisions of the Plan.

In accordance with section 4.8(b) of the Plan, each General Unsecured Claim listed on the Schedule of Allowed General Unsecured will be Allowed on the Effective Date pursuant to section 506(a) of the Bankruptcy Code in the applicable amount set forth on the Schedule of Allowed General Unsecured Claims. Each General Unsecured Claim not listed on the Schedule of Allowed General Unsecured Claims (the “Disputed Claims”) shall be resolved in accordance with Article VII of the Plan. All Holders of Allowed General Unsecured Claims shall receive the treatment afforded to such Holders pursuant to section 4.8 of the Plan.

In accordance with section 4.9(b) of the Plan, each Convenience Claim listed on the Schedule of Allowed General Unsecured Claims will be Allowed on the Effective Date in the applicable amount set forth on the Schedule of Allowed General Unsecured Claims. All Holders of Allowed Convenience Claims shall receive the treatment afforded to such Holders pursuant to section 4.9 of the Plan.

Except insofar as a Claim is Allowed under the Plan or was Allowed prior to the Effective Date, the Debtors or Reorganized Debtors, as applicable, shall have and retain any and all rights and defenses such Debtor has with respect to any Disputed Claim. Any objections to Claims shall be served and Filed on or before the Claim Objection Deadline. All Disputed Claims not objected to by the end of such period shall be deemed Allowed unless such period is extended upon approval of the Bankruptcy Court.

Any Holder who disagrees with the amount of such Holder’s Allowed General Unsecured Claim or Allowed Convenience Claim as set forth in the Schedule of Allowed General Unsecured Claims must timely File an objection to the Plan prior to January 11, 2024 at 5:00 p.m. (prevailing Central Time) (the “Proposed Plan Objection Deadline”).2 Any failure of a Holder of a General Unsecured Claim or Convenience Claim to timely File an objection prior to the Proposed Plan Objection Deadline will result in such Holder’s Claim being Allowed in the amount set forth on the Schedule of Allowed General Unsecured Claims.

 

1 

Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to such terms in the Plan.

2 

The Debtors’ Proposed Plan Objection Deadline is subject to Bankruptcy Court approval.

The Debtors reserve all rights to amend, revise, or supplement this Exhibit N to the Plan Supplement, and any of the designations contained herein, at any time before the Effective Date, or any such other date as may be provided for by the Plan or by order of the Bankruptcy Court.

Schedule of Allowed General Unsecured Claims

In re Core Scientific, Inc., et al.

Case No. 22-90341 (CML), Jointly Administered

 

COUNT

   

NAME³

      CLAIM
NUMBER		    PRE-PETITION
CLAIM
AMOUNT		      POST-PETITION
INTEREST¹		      ALLOWED
GENERAL
UNSECURED
CLAIM
(TOTAL
FILED
CLAIM
AMOUNT
PLUS POST-
PETITION
INTEREST)1		     ALLOWED
CONVENIENCE
CLAIM
(TOTAL FILED
CLAIM
AMOUNT PLUS
POST-
PETITION
INTEREST)		  
1.    BRF Finance Co., LLC      328      N/A        N/A      $ 39,188,152 4   
2.    MP2 Energy Texas, LLC d/b/a Shell Energy Solutions      372      N/A        N/A      $ 12,315,478 4   
3.    Sphere 3D Corp.5      358      N/A        N/A      $ 10,000,000    
4.    B. Riley Commercial Capital, LLC      327      N/A        N/A      $ 9,797,038 4   
5.    Foundry Digital LLC [DCG Foundry LLC]      360, 361      N/A        N/A      $ 5,500,000 3   
6.    Duke Energy Carolinas, LLC      27      N/A        N/A      $ 4,338,451 4   
7.    Cooley LLP      40      N/A        N/A      $ 3,112,960 4   
8.    LML Services, LLC dba FlowTx      29      N/A        N/A      $ 1,318,795 4   
9.    Moss Adams LLP      28    $ 669,689      $ 33,866      $ 703,555    
10.    Convergint Technologies LLC      479    $ 460,000      $ 24,165      $ 502,015    
11.    Jonathan Barrett      448    $ 425,000      $ 21,492      $ 446,492    
12.    AAF International      493    $ 266,468      $ 13,475      $ 279,943    
13.    Novo Construction, Inc.      209    $ 259,981      $ 13,147      $ 273,128    
14.    ComNet Communications LLC      139    $ 247,937      $ 12,538      $ 260,475    
15.    Quinn Emanuel Urquhart & Sullivan LLP      244      N/A        N/A      $ 300,357 4   
16.    Trinity Mining Group, Inc.      411      N/A        N/A      $ 261,442 4   
17.    Consilio LLC      228      N/A        N/A      $ 199,516 4   
18.    M. Arthur Gensler Jr. & Associates, Inc. a.k.a. Gensler      486    $ 104,110      $ 35,889      $ 139,999    
19.    Marnoy Interests, Ltd d/b/a OP      419    $ 97,274      $ 4,919      $ 102,193    
20.    Bergstrom Electric      02424068    $ 89,929      $ 4,548      $ 94,477    
21.    Onyx Contractors Operations, LP      134    $ 82,945      $ 4,194      $ 87,140    
22.    Delcom, Inc.      422    $ 81,630      $ 4,128      $ 85,758    
23.    McDermott Will & Emery LLP      66    $ 54,834      $ 2,773      $ 57,606    
24.    Hutchison & Steffen, PLLC      309    $ 48,772      $ 2,466      $ 51,238    
25.    Morgan, Lewis & Bockius LLP      599    $ 35,580      $ 1,799      $ 37,379    
26.    Fishman Stewart PLLC      266    $ 35,200      $ 1,780      $ 36,980    
27.    Eaton Corporation      332    $ 32,680      $ 1,653      $ 34,333    
28.    Carey Olsen Cayman Limited [CO Services Cayman Limited]      58    $ 32,638      $ 1,650      $ 34,288    
29.    Lattice      02424025    $ 16,053      $ 812      $ 16,864    
30.    TY Properties      02424119    $ 15,610      $ 789      $ 16,400    
31.    Averitt Express      16    $ 15,057      $ 761      $ 15,819    
32.    Truckload Connections      15    $ 14,873      $ 752      $ 15,625    
33.    Gravity Oilfield Services LLC      32    $ 13,440      $ 680      $ 14,120    
34.    GreatAmerica Financial Services Corporation [GreatAmerica Leasing Corporation]      14    $ 12,668      $ 641      $ 13,308    
35.    Lake Effect Traffic LLC      02424080    $ 12,090      $ 611      $ 12,701    
36.    Apex Logistics International Inc.      02424030    $ 12,010      $ 607      $ 12,617    
37.    Felker Construction Company Inc.      264    $ 11,933      $ 603      $ 12,536    
38.    ORGDEV Limited      95    $ 10,000      $ 506      $ 10,506    
39.    CRG Financial LLC (As Assignee of Ricks Rental Equipment)      485    $ 9,847      $ 498      $ 10,345    
40.    Uline      2    $ 9,282      $ 469        $ 9,752  
41.    Proctor Management6      02424107    $ 9,000      $ 455        $ 9,455  
42.    BitAlpha, Inc. [Bitwave]      631    $ 8,750      $ 442        $ 9,192  
43.    Shermco Industries, Inc.      02424046    $ 8,154      $ 412        $ 8,566  
44.    American Security and Protection Service LLC      02424092    $ 8,071      $ 408        $ 8,479  
45.    EvoTek      02424037    $ 7,969      $ 403        $ 8,372  
46.    Greyline Partners, LLC [IQ-EQ]      25    $ 6,000      $ 303        $ 6,303  
47.    Dallas County      26    $ 5,021      $ 254        $ 5,275  
48.    Donnelley Financial Solutions      02424043    $ 4,894      $ 247        $ 5,141  
49.    American Paper & Twine Co.      33    $ 4,779      $ 242        $ 5,021  
50.    M & S Patterson, Inc.      10    $ 4,610      $ 233        $ 4,843  
51.    Regulatory DataCorp, Inc.      217    $ 4,323      $ 219        $ 4,542  
52.    A to Z Pest Control & Services      38    $ 3,530      $ 179        $ 3,709  
53.    Calvert City Municipal Water and Sewer      272    $ 3,529      $ 178        $ 3,707  
54.    Bitwave      02424105    $ 3,500      $ 177        $ 3,677  
55.    Data Sales Co Inc.      02424042    $ 3,064      $ 155        $ 3,219  
56.    Logix Fiber Networks      20    $ 2,984      $ 151        $ 3,135  
57.    Jackson Purchase Energy Corporation      02424085    $ 2,437      $ 123        $ 2,560  
58.    Lone Star Corporation      24    $ 2,158      $ 109        $ 2,267  
59.    Tangent Energy Solutions Inc      02424067    $ 2,000      $ 101        $ 2,101  
60.    Microsoft Corporation      339    $ 1,699      $ 86        $ 1,785  
61.    Grubhub Holdings Inc.      02424097    $ 1,591      $ 80        $ 1,671  
62.    Grand Forks Utility Billing      02424051    $ 1,530      $ 77        $ 1,608  
63.    Northern States Power Minnesota dba Xcel Energy      6    $ 1,177      $ 60        $ 1,237  
64.    AT&T      02424135    $ 1,139      $ 58        $ 1,197  
65.    Optilink      02424095    $ 1,058      $ 54        $ 1,112  

 

Page 1

Schedule of Allowed General Unsecured Claims

In re Core Scientific, Inc., et al.

Case No. 22-90341 (CML), Jointly Administered

 

COUNT

   

NAME³

    CLAIM
NUMBER		    PRE-PETITION
CLAIM
AMOUNT		      POST-PETITION
INTEREST¹		      ALLOWED
GENERAL
UNSECURED
CLAIM
(TOTAL
FILED
CLAIM
AMOUNT
PLUS POST-
PETITION
INTEREST)1		      ALLOWED
CONVENIENCE
CLAIM
(TOTAL FILED
CLAIM
AMOUNT PLUS
POST-
PETITION
INTEREST)		  

66.

    FedEx    02424127    $ 797      $ 40         $ 837  

67.

    Dockery Auto Parts    02424074    $ 758      $ 38         $ 796  

68.

    Prime Mowing and Property Management LLC    02424117    $ 750      $ 38         $ 788  

69.

    Cherokee Rental, Inc.    35    $ 722      $ 36         $ 758  

70.

    Level 3 Communications LLC    02424063    $ 701      $ 35         $ 737  

71.

    Kesco Air Inc.    02424104    $ 680      $ 34         $ 714  

72.

    Salary.com LLC    02424057    $ 631      $ 32         $ 663  

73.

    Water Works C&R, LLC    02424069    $ 592      $ 30         $ 622  

74.

    Countrywide Sanitation Co.    02424137    $ 577      $ 29         $ 606  

75.

    Murphy & Grantland, P.A.    17    $ 480      $ 24         $ 504  

76.

    Rhode Island Division of Taxation    627    $ 403      $ 20         $ 423  

77.

    C.H. Robinson Worldwide, Inc.    113    $ 398      $ 20         $ 418  

78.

    Carpet Capital Multi-System Inc.    02424077    $ 395      $ 20         $ 415  

79.

    Bearden Industrial Supply    02424109    $ 354      $ 18         $ 372  

80.

    Eagle Promotions    02424076    $ 295      $ 15         $ 310  

81.

    Austin Professional Cleaning Services, LLC    02424126    $ 261      $ 13         $ 274  

82.

    Waterlogic Americas LLC    02424138    $ 210      $ 11         $ 220  

83.

    Commercial Plumbers Supply    02424108    $ 203      $ 10         $ 213  

84.

    Carpet Capital Fire Protection Inc    02424094    $ 200      $ 10         $ 210  

85.

    Mountain Top Ice    02424083    $ 184      $ 9         $ 193  

86.

    Mobile Modular Portable Storage    02424114    $ 135      $ 7         $ 142  

87.

    Pye-Barker Fire and Safety LLC    02424082    $ 118      $ 6         $ 124  

88.

    Frontline Shredding Inc.    614    $ 100      $ 5         $ 105  

89.

    Nebraska Department of Labor    22    $ 95      $ 5         $ 100  

90.

    EPB of Chattanooga    02424130    $ 92      $ 5         $ 96  

91.

    Lisa Ragan Customs Brokerage    02424139    $ 90      $ 5         $ 95  

92.

    JBM Office Solutions    02424115    $ 78      $ 4         $ 82  

93.

    Marble Community Water System    02424136    $ 63      $ 3         $ 66  

94.

    Interstate Welding and Steel Supply    02424102    $ 57      $ 3         $ 60  

95.

    Alpha Waste Disposal Inc.    02424129    $ 56      $ 3         $ 59  

96.

    State of Tennessee Department of Revenue    02424153    $ 22      $ 1         $ 23  

97.

    Financial Accounting Standards Board/Governmental Accounting Standards Board    02424120    $ 9      $ 0         $ 9  
              

 

 

     

 

 

  
   Total               $89,710,030      $ 128,960  
              

 

 

     

 

 

  

 

¹

The amounts appearing in this column represent Post-Petition Interest at the Federal Judgement Rate of 4.64% through 1/22/2024.

²

Does not include (i) Miner Equipment Lender Deficiency Claims, which may be found on Exhibit J to the Plan or (ii) Claims related to executory contracts that the Debtors intend to assume pursuant to the Plan or otherwise settled.

³

This amount reflects the agreed amount of the Allowed General Unsecured Claim based on a settlement in principle between Foundry Digital LLC and the Debtors, and not the total filed claim amount, which is in the amount of not less than $18,404,990.08 plus interest.

4 

The Allowed General Unsecured Claims for each of these claims are part of the global mediated settlement (the “Mediated Settlement”) between the Debtors, the Official Committee of Unsecured Creditors and its members, B. Riley, the Ad Hoc Noteholder Group, and the Official Committee of Equity Holders and its members. The Mediated Settlement resolved, among other issues, the applicable claim amounts for these holders and is subject to the occurrence of the Effective Date

5

This amount reflects the agreed amount of the Allowed General Unsecured Claim based on a settlement in principle between Sphere 3D Corp. and the Debtors and not the total filed claim amount.

6

Plan to allow Pre-Petition invoices under future Rejection Damages claim.

 

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