- Adam Sullivan is appointed as the permanent president of Core Scientific.
- The bankrupt crypto firm’s debtors file a motion for approval of their chosen candidate.
- The soon-to-be ex-president will remain the company’s Chief Administrative and Chief Legal Officer.
The debtors of the bankrupt crypto-mining company have filed a motion to approve its newly chosen permanent president in its bid to reorganize the company.
On April 10, the debtors of Core Scientific filed a motion in the United States Bankruptcy Court for the Southern District of Texas, stating its appointment of Adam Sullivan—a managing director at XMS Capital, an investment banking firm—as the president of the crypto mining company.
The “Debtors” believe Adam Sullivan to be well-experienced and expect him to lead the company amid its bankruptcy proceedings.
The debtors were left with no president immediately after filing the Chapter 11 bankruptcy case in December 2022, creating a gap in the Debtors’ management team. During this period, the debtors temporarily appointed Todd DuChene, the General Counsel, Secretary, and Chief Legal Officer as the president of the firm till the permanent president was appointed.
“Adam Sullivan is no stranger to the virtual asset mining space and has extensive experience in the crypto asset banking investment industry,” the filing reads.
The Debtors stated that Sullivan was the right candidate for the company’s president role, listing a few of his deeds and accomplishments to bolster further its reason for choosing him.
With the appointment of his new position in Core Scientific, Adam Sullivan’s annual base salary was stated to be $500,000 and would be reviewed annually, meaning his earning would be subject to increase and not decrease. His yearly bonus (cash bonus reward) was also stated to be around $500,000 for 2023.
The newly appointed president’s role includes reporting to the firm’s CEO, Mike Levitt, and “principally working on financial and strategic matters,” which would involve working with the clients, suppliers, and creditor relationships.
Core Scientific’s debtors believe that the six years of experience Adam Sullivan brings would help discuss and arrange a plan for reorganizing the bankrupt crypto mining company as a management team member.
The filing stated that the Debtors’ reason for hiring Adam Sullivan was heavily weighed on his credentials and his experience, and upon the assumption of his role in the company, Todd DuChene, the firm’s present president, will become the Chief Legal and Administrative Officer due to his knowledge of the company’s business operations.
Core Scientific’s debtors filed this motion to the Bankruptcy Court and requested that it approve the decision before it can be fully implemented.
Conclusion
The appointment of Adam Sullivan as the president of Core Scientific is the Debtors’ decision to reorganize the bankrupt crypto mining company as it believes that Adam can assist in offering services that will help amid the bankruptcy proceedings.
