Gemini Calls Creditors Against New Genesis Bankruptcy Plan
Key Points:
- Gemini is uniting creditors to seek more funds from the parent company of bankrupt Genesis.
- Creditors may front money in exchange for a bigger share of potential lawsuit gains, targeting up to $2.8 billion in recovery.
- This deepens the feud between Gemini and DCG, as the exchange opposes the bankruptcy plan for lacking essential details and guarantees.
Gemini, a prominent cryptocurrency exchange, is spearheading an effort to unite creditors in a bid to maximize returns from Digital Currency Group (DCG), the parent company of the bankrupt crypto lending firm Genesis, as reported by The Information on Friday.
This innovative proposal entails certain creditors providing upfront funds to expedite repayments to others, with the trade-off being a larger stake in potential litigation gains against DCG. The plan outlines various options for creditors, projecting potential recoveries of up to $2.8 billion stemming from the Genesis bankruptcy.
The ongoing dispute between Gemini’s co-founders, Cameron and Tyler Winklevoss, and DCG’s founder, Barry Silbert, is poised to escalate further with this development.
The exchange’s objective is to rally fellow creditors behind a strategy aimed at extracting more resources from DCG to settle the substantial debts totaling over $3.5 billion owed by its insolvent lending subsidiary, Genesis.
The proposal, as seen by The Information, is predicated on creditors advancing funds to expedite repayments, in exchange for a larger portion of the potential proceeds from lawsuits against DCG for alleged fraud and other grievances.
Genesis initiated its bankruptcy proceedings in January with outstanding debts of at least $3.4 billion. In February, it reached a tentative agreement for a restructuring plan, backed by DCG and its primary creditors, including Gemini.
However, Gemini contested the bankruptcy plan proposed by Genesis and DCG, citing a lack of necessary details and guarantees for some of the largest debtors.
The exchange’s legal filing noted that although an agreement in principle was disclosed between the Committee, DCG, and the debtors, it remained contingent on definitive documentation and lacked essential particulars.
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.
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Gemini Calls Creditors Against New Genesis Bankruptcy Plan
Key Points:
- Gemini is uniting creditors to seek more funds from the parent company of bankrupt Genesis.
- Creditors may front money in exchange for a bigger share of potential lawsuit gains, targeting up to $2.8 billion in recovery.
- This deepens the feud between Gemini and DCG, as the exchange opposes the bankruptcy plan for lacking essential details and guarantees.
Gemini, a prominent cryptocurrency exchange, is spearheading an effort to unite creditors in a bid to maximize returns from Digital Currency Group (DCG), the parent company of the bankrupt crypto lending firm Genesis, as reported by The Information on Friday.
This innovative proposal entails certain creditors providing upfront funds to expedite repayments to others, with the trade-off being a larger stake in potential litigation gains against DCG. The plan outlines various options for creditors, projecting potential recoveries of up to $2.8 billion stemming from the Genesis bankruptcy.
The ongoing dispute between Gemini’s co-founders, Cameron and Tyler Winklevoss, and DCG’s founder, Barry Silbert, is poised to escalate further with this development.
The exchange’s objective is to rally fellow creditors behind a strategy aimed at extracting more resources from DCG to settle the substantial debts totaling over $3.5 billion owed by its insolvent lending subsidiary, Genesis.
The proposal, as seen by The Information, is predicated on creditors advancing funds to expedite repayments, in exchange for a larger portion of the potential proceeds from lawsuits against DCG for alleged fraud and other grievances.
Genesis initiated its bankruptcy proceedings in January with outstanding debts of at least $3.4 billion. In February, it reached a tentative agreement for a restructuring plan, backed by DCG and its primary creditors, including Gemini.
However, Gemini contested the bankruptcy plan proposed by Genesis and DCG, citing a lack of necessary details and guarantees for some of the largest debtors.
The exchange’s legal filing noted that although an agreement in principle was disclosed between the Committee, DCG, and the debtors, it remained contingent on definitive documentation and lacked essential particulars.
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.
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