Last updated on November 2, 2023
Crypto lender Genesis Global Capital has submitted an amended Chapter 11 bankruptcy plan to address the claims and interests of its creditors. The plan is the result of extensive negotiations with the Official Committee of Unsecured Creditors, crypto exchange Gemini, and the Ad Hoc Group of Genesis Lenders. While significant progress has been made in resolving key issues, discussions are still ongoing and all parties retain their rights. The amended plan categorizes creditor claims into 10 classes, with 4 classes dedicated to crypto-denominated unsecured claims divided by currency. Under the proposed plan, Genesis entities would be wound down and their assets liquidated to distribute to creditors. Segregated accounts would be set up for plan distributions, and intercompany claims between Genesis Global Capital and Genesis Asia Pacific would be settled. Corporate governance changes are also proposed, including the replacement of entity boards with a new board.
#Genesis #bankruptcy #crypto #creditors #negotiations #liquidation #assets #reorganization #governance
The Genesis bankruptcy filing and revised plan reflect the challenges faced by cryptocurrency lenders in 2022 due to sharp declines in the crypto market. Genesis filed for Chapter 11 protection, citing extreme market dislocation and loss of industry confidence following the collapse of crypto exchange FTX. The proposed plan aims to resolve the bankruptcy in an orderly manner. The ongoing negotiations are crucial to balancing the interests of creditors with different types of claims, whether fiat, Bitcoin, or alternative cryptocurrencies. The successful resolution of the Genesis bankruptcy has broader implications for the cryptocurrency industry, as it could help restore confidence through an organized wind-down process and reasonable creditor recoveries. However, final terms of the plan are still undecided, and the amended plan represents progress but not a definitive agreement between the parties.
#cryptocurrency #lenders #crypto market #creditor interests #recovery #confidence #industry
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