Last updated on November 2, 2023
Crypto lender Genesis Global Capital has filed an amended Chapter 11 bankruptcy plan with the aim of resolving outstanding claims and interests of creditors. The revised plan is the result of extensive negotiations between Genesis, the Official Committee of Unsecured Creditors, crypto exchange Gemini, and the Ad Hoc Group of Genesis Lenders. Although there has been significant agreement on key issues, discussions are still ongoing, and all parties reserve their rights.
The amended plan classifies creditor claims against Genesis Global Holdco into 10 categories, including four classes of crypto-denominated unsecured claims divided by currency. Fiat, Bitcoin, Ethereum, and alternative crypto-denominated unsecured claims would be impaired, giving them the right to vote on the plan. Subordinated claims, government penalty claims, and interests, on the other hand, would reject the plan without voting rights. The plan also involves the winding down of Genesis entities by newly established “Wind-Down Debtors” overseen by a Plan Administrator Officer, New Board, and Wind-Down Oversight Committee. These wind-down debtors would liquidate assets to distribute to creditors according to agreed principles.
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