Shareholders of bankrupt bitcoin miner Core Scientific Inc. will have an official voice in its chapter 11 case and a $4.75 million budget from the company to advocate for as large a recovery as possible for its equity, WSJ Pro Bankruptcy reported. Bankruptcy Judge David Jones in Houston said on Friday that he was approving the appointment of an official committee of equity holders after warning that he would closely examine — and potentially claw back — any legal fees incurred by shareholders for unnecessary litigation. Creditors including BlackRock Inc. and Apollo Global Management Inc. had opposed the formation of an official equity committee, saying its fees would eat into recoveries on the company’s secured debt, which isn’t guaranteed to be paid in full. But Core Scientific agreed to fund the equity committee after the rising price of bitcoin fueled hopes that its shares would have value despite its bankruptcy filing. Judge Jones said last week that he would respect the company’s business judgment. He also warned that he would use any tools available if the equity committee pursued litigation that didn’t add value to the chapter 11 estate.
