The Crypto Lender Genesis and its group of key creditors have agreed to a 30-day mediation process in an attempt to move forward on a final restructuring plan, although one company expresses “frustration” at the pace of progress.
April 30, Gemini tweeted that Genesis, its parent company Digital Currency Group (DCG), its Unsecured Creditors Committee (UCC), and Gemini have agreed to a 30-day mediation process in court on April 28.
Gemini said its goal is “to reach a final resolution as soon as possible” and that it “supported” mediation. Gemini, however, added that it had “expressed our frustration” regarding “the pace of progress between the parties and the need for urgency.”
2/ Gemini is supportive of mediation and working with the parties to bring this to a conclusion. We have also expressed our frustration on the record on the pace of progress among the parties and the need for urgency. The next status conference with the Court will be on May 4th.
— Gemini (@Gemini) April 30, 2023
2/ Gemini supports mediation and work with the parties to bring this matter to a successful conclusion. We have also expressed our frustration on the record about the pace of progress between the parties and the need for urgency. The next meeting with the Tribunal will take place on May 4.
The mediation is to advance a proposed bankruptcy exit plan filed in February that expected creditors to recover 80% of the lost funds. The plan is backed by DCG, but UCC opposed the restructuring deal because it wanted better terms.
Genesis’s next bankruptcy court appearance is scheduled for May 4. Sean O’Neal, a lawyer for Genesis, told the court on April 30 that he expects to hold two mediation sessions before May 8, and that the final terms of the settlement will be made public after the mediation period.
Genesis and the UCC must choose a mediator. O’Neal said he has begun contacting possible mediators and that the process will be explained to the court once one has been selected.
On April 25, the DCG expressed its opinion on the matter when Genesis filed its request for mediation.
DCG Statement on Genesis filing Motion for Mediation: pic.twitter.com/pRluUnL49C
—Digital Currency Group (@DCGco) April 25, 2023
DCG Statement on the Mediation Request Filed by Genesis:
The cryptocurrency conglomerate said the settlement would “prolong the court process” due to renewed lawsuits, adding that it was “difficult to understand the reasoning” of Genesis creditors, as they had given a “limited commitment” since the plan proposed in February.
Genesis filed for Chapter 11 bankruptcy in a New York district court in Januaryestimating that their liabilities were between USD 1,000 and 10,000 million, and that their assets were in the same range.
The cryptocurrency lender was one of several companies affected by liquidity problems following the collapse of FTX.
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