Key Points:
“If we do not make substantial progress with respect to a deal in principle in the next two weeks, we do not believe that we will be seeking to extend the mediation further,” company lawyer Sean O’Neal told US Bankruptcy Judge Sean Lane. As a result, the talks will have to wrap up by August 16.
Attorneys said if the parties fail to reach an agreement by August 16, Genesis will continue with its existing bankruptcy plan, subject to certain modifications. Reconciliation is one of the final barriers preventing Genesis from going bankrupt.
The company’s largest creditor is 340,000 Gemini Earn customers who owe $795.5 million. Those clients formed a “special” committee represented by the law firm Kirkland & Ellis. Another group of about 60 institutional creditors, represented by Proskauer Rose, owes $1.5 billion.
The bankrupt crypto firm is understood to have been conciliating with key stakeholders, including parent company Digital Currency Group (DCG) and Gemini Trust Co., since May. They were trying to salvage the bankruptcy plan proposed by DCG, but the official committee of unsecured creditors rejected the plan.
Attorneys for Genesis Global Holdco filed a term sheet in February outlining a settlement agreement with creditors indicating that DCG will shoulder the heavy burden of restructuring the already established bankrupt crypto lending firm. The original settlement was backed by creditors representing more than $2 billion in claims against Genesis, including Gemini Trust Co.
The company’s lending arm filed for Chapter 11 protection in January following the collapse of crypto exchange FTX, which triggered an “unprecedented” wave of withdrawals that caused affiliates to withdraw. They have to suspend lending and borrowing.
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.
Here are the latest predictions for Dogecoin, Shiba Inu, and ETFswap.
Discover BlockDAG's 100% bonus and $110M presale surge that’s sparking interest among crypto enthusiasts. Also,…
Discover why crypto investors are moving to ETFSwap (ETFS) as $500 million liquidity injection is…
Learn about BlockDAG's $110M presale achievement and the whopping 100% bonus offer, alongside Ethereum's growth…
Thai police corruption exposed as officers extort millions in USDT from a Chinese man under…
SafePal Telegram Wallet allows 950 million users to create compliant crypto-friendly Swiss bank accounts, integrating…
This website uses cookies.