DCG subsidiary Genesis is optimistic about upcoming talks with creditors and believes bankruptcy procedures can be finalized in a few months. Genesis, one of the last big names in the crypto world to go bankrupt, filed for bankruptcy on January 20. However, unlike other high-profile cases, the company’s asset ledger doesn’t look all that bad. In fact, recent reports have claimed that creditors will soon be able to receive at least some of their funds.
Restructuring plan for Genesis on the table
An attorney for Genesis said he believes disputes with creditors can be resolved within a week and bankruptcy proceedings can be completed by the end of May 2023. Sean O’Neal, one of Genesis’s attorneys, told the Manhattan court during a preliminary hearing that he was “cautiously optimistic” about talks with creditors and hoped a good faith settlement with creditors would be reached within a week. This, in turn, will allow the court to focus on determining the conditions for Genesis to return to form and exit bankruptcy proceedings, as reported by Reuters.
Brian Rosen, an attorney representing anonymous creditors with over $1.5 billion in claims against Genesis, was more cautious than optimistic. However, Rosen acknowledged that negotiations are already underway between them and the two sides are approaching an agreement. Unlike FTX and other companies that went bankrupt with more debt than barbarity, Genesis appears to be able to pay off despite market woes.
Genesis may return
As quoted by Kriptokoin.com, it is reported that Genesis Global Capital owes at least $3.4 billion to a group of more than 100,000 creditors. However, if all assets and liabilities are factored in, Genesis allegedly controls just over $5 billion, potentially bringing them $1.6 billion. Unfortunately, approximately $1.7 billion of these assets and liabilities are in claims against Genesis’ parent company, Digital Currency Group.
Coincidentally, the next maturity date on Genesis’s loan to parent company DCG is in May 2023, according to DCG CEO Barry Silbert, who commented on an amount very similar to the total amount Genesis claimed against DCG. May 2023, as noted above, is the month in which Genesis’ lawyers predict they will be able to finalize their bankruptcy proceedings. It’s too early to be sure if Genesis will actually achieve the quick fix they’re looking for. However, if asset ledgers are any indication, the company may be the first former crypto giant to fix its issues and return in a functional form.
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