Genesis granted plan extension; judge says FTX can’t take part in mediation
A judge in the Genesis bankruptcy case has extended the deadline by which the company must file a restructuring plan, according to a June 5 filing.
Genesis receives plan extension
Genesis is currently in bankruptcy proceedings. On May 19, the company requested a 100-day extension of the deadline for submitting a restructuring plan.
U.S. Bankruptcy Judge Sean Lane has now granted the request.related June 5th Genesis has until August 2, 2023 to submit its plans, according to court filings. The company had originally planned to extend the period until August 27.
The extension of the deadline depends on continued cooperation with the company’s official Unsecured Creditors Committee on the plan. If discussion breaks down, the committee may request a motion to end the extended submission period on seven days’ notice.
Additionally, Genesis’ exclusive solicitation period has been extended to October 1 (rather than the originally requested October 26). Genesis may also seek further expansion in the future.
FTX cannot participate in arbitration negotiations
FTX, a creditor in Genesis’ bankruptcy, recently challenged Genesis’ extension request. FTX was also unhappy about being left out of the arbitration talks.
reported by Bloomberg June 5th Judge Lane denied FTX’s request. The judge said there must be “some degree of radio silence” in any mediation process. He also said that shortening the arbitration period would not lead to early termination of the case.
Discussions about the Genesis arbitration are extremely private. According to a Bloomberg report, Genesis appears to be working primarily with parent company Digital Currency Group.
In an earlier complaint, FTX also claimed Genesis had nearly $4 billion in debt, against Genesis’ estimate of $0.00. According to Bloomberg’s latest report, the judge will make a decision on the matter at an upcoming public hearing.
From Genesis onwards, extensions of the plan were allowed. Appeared first on CryptoSlate, judge says FTX cannot participate in arbitration.
