The debtors behind bankrupt cryptocurrency mining firm Core Scientific have filed a motion seeking approval to hire a permanent president.
In an April 10 filing with the U.S. Bankruptcy Court for the Southern District of Texas, Core Scientific said it was addressing "a gap in the debtor management team" before the company filed for bankruptcy in December. Debtors appointed Adam Sullivan, managing director of investment banking firm XMS Capital Partners, to serve as president during the company's bankruptcy proceedings.
“Mr. Sullivan is no stranger to the field of digital asset mining and has extensive experience in the digital asset investment banking industry,” the document stated. "[He] will primarily handle financial and strategic matters, including customer, supplier and creditor relationships, and assist in the negotiation of the restructuring plan as a member of the management team." Sullivan will receive a base salary of $500,000 as president through 2023 and a guaranteed annual bonus of at least $500,000, according to the debtor. Todd DuChene, soon-to-be former president of Core Scientific, will continue as the company's chief legal officer and assume the role of chief administrative officer.
Before filing for bankruptcy, Core Scientific reported that it expected its "existing cash resources to be depleted by the end of 2022" due to low bitcoin prices , increased electricity bills and a lawsuit with cryptocurrency lender Celsius. The mining firm, which hosts more than 37,000 rigs for Celsius, alleged in court documents that the cryptocurrency lender failed to pay electricity bills, causing it liquidity problems. Despite going through bankruptcy proceedings, the Texas-based company has continued to mine BTC despite disruptions in the supply of its rigs. The bankruptcy court approved Core Scientific’s handing over more than 27,000 miners to New York’s Digital Investment Group in February as part of a deal to repay about $38 million in debt.
