Key Points:
The amended restructuring plan reflects strong consensus on some important areas, according to the filing, although Genesis, its creditors, and other stakeholders retain their position in continuing discussions. The court appointed a mediator to address issues, including the DCG problem, in April for a 30-day term that was later extended.
The plan states that DCG and insolvent hedge fund Three Arrows Capital (3AC) claims are challenged and impaired, implying that creditors would not get the full amount of their claims. As Coincu reported, 3AC has sought to join in Genesis’ bankruptcy mediation process.
DCG claims would be treated like other unsecured creditors but will not get any revenues from debts still owed by the parent company, according to the agreement. DCG said in January that it owes Genesis Capital $526 million, due in May 2023, and $1.1 billion on a promissory note due in June 2032.
The complaint said that claims linked to the insolvent crypto exchange FTX and its sibling trading arm Alameda Research should not be permitted to profit from any clawbacks of illicit payments.
FTX claims Genesis owes it $3.9 billion, a claim Genesis denies. In a concurrent filing on Tuesday, FTX contended that its claims against Genesis should be resolved as part of its own Delaware court proceedings.
The proposal was initially offered on January 20, the same day that three Genesis group firms filed for bankruptcy in a New York court.
At a bankruptcy hearing, US Bankruptcy Court Judge Sean Lane prolonged a mediation session between crypto lender Genesis and its creditors as emotions flared over the role DCG would play in the lender’s rehabilitation. A similar agreement would form the basis of a Chapter 11 bankruptcy plan to pay hundreds of thousands of the company’s creditors.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Harold
Coincu News
Discover the best cryptos to buy and hold today: Qubetics leads with 1000x potential, Ethereum…
With the platform facing a cracked whip, Trump Media company is expanding into new business…
Major crypto firms, including Ripple, Kraken, and Circle, are competing for spots on President-elect Donald…
Analysts highlight a breakout alert as Shiba Inu (SHIB), and Dogecoin show signs of recovery…
SEC Chair Gary Gensler will step down on January 20, 2025, coinciding with President-elect Donald…
The MicroStrategy convertible notes offering, initially set at $1.75 billion, was increased to $2.6 billion…
This website uses cookies.