FTX and its affiliated debtors have voiced numerous objections to Genesis’ bankruptcy proceedings and restructuring plans. June 2 Court Submissions.
FTX Claims Estimated at Zero
On May 9, Genesis began seeking a 100-day extension of its Chapter 11 recovery plan. The company has since filed another application in support of the plan.
FTX’s debtors are now filing complaints against Genesis’ June 1 allegations. In the filing, Genesis attempted to estimate FTX debtor claims at $0.00, but said in May that FTX was aiming to recover about $4 billion from Genesis’ bankruptcy proceedings.
FTX debtors have not disclosed whether they intend to collect another $4 billion. However, they admitted that they were “by far the largest unsecured creditors” in the case, a fact Genesis’ debtors themselves had long acknowledged.
Genesis initially justified itself by stating that a $0.00 estimate was needed to avoid delays in advancing its undisclosed Chapter 11 turnaround plan.
Genesis’ plans are top secret
FTX debtors also complained about the secrecy of Genesis’ plan, saying they were not invited to participate in the mediation process. They said Genesis debtors were excluded despite claiming they were working with “all parties” to develop plans.
In addition, FTX debtors called for the Genesis mediation process to be abandoned entirely, saying that without FTX’s participation the plan would be a “waste of legacy resources.”
FTX debtors also complained that Genesis and its debtors filed the latest June 1 claims without providing any prior notice.
FTX debtors want their claims liquidated
In response to Genesis’ apparently negligent decision, FTX and its debtors moved to demand suspension relief. An initial suspension would have prevented FTX debtors from suing Genesis in FTX’s own bankruptcy proceedings.
If suspension relief is granted, FTX debtors will attempt to liquidate their claims against Genesis Global Capital as part of FTX’s bankruptcy proceedings.
FTX debtors say the complaint is scheduled for a hearing on June 15.
An article first appeared on CryptoSlate where FTX challenged Genesis after being ignored for a $0.00 bill.