Genesis seeks 100-day extension for recovery plan as DCG misses $630M payment
Bankrupt cryptocurrency lender Genesis has filed a motion to extend the exclusivity period of its turnaround plan by 100 days.
Why Genesis Asked for Expansion
According to a court motion filed May 19 in the United States Bankruptcy Court for the Southern District of New Jersey,
York, a bankrupt financial institution, said the extension was needed “to achieve a value-maximizing restructuring without disrupting competing plans.”
Genesis wrote that the size and complexity of the lawsuit were sufficient grounds for the court to grant its request. The lender said its balance sheet showed billions of dollars in assets and liabilities to be restructured.
In addition, the company’s operations in the digital asset industry mean its processes face an evolving regulatory regime, which it needs to take into account when it does.
Lenders also highlighted The request should be granted because it has made “good faith progress” toward its exit from bankruptcy, and the requested extension “will prejudice and pressure creditors and stakeholders.” not,” he claimed.
Genesis will have until August 27 to submit plans if the request is granted, but the exclusive solicitation period will be extended to October 26.
Gemini says DCG failed to pay $630 million.
Meanwhile, cryptocurrency exchange Gemini said its bankrupt financier parent company Digital Currency Group (DCG) said: Missed A $630 million payment was due to the subsidiary last week.
DCG was one of the victims of the market contagion that hit many cryptocurrency companies in 2022. The crypto conglomerate owes nearly $1.7 billion to its lending subsidiary Genesis.
Earned on May 19th update, Gemini said it was considering whether to give it patience to avoid a DCG default. The exchange added that the move would depend on whether “both parties believe that the DCG will enter into negotiations in good faith on the agreed transaction.”
In situations where an agreement cannot be reached, Gemini said it would “work with Genesis to propose the terms of a revised restructuring plan that would proceed without DCG’s participation in the agreement.” The cryptocurrency firm noted that this triggered Genesis’ May 19 exclusivity extension request.
Meanwhile, Gemini added that it is preparing to file a master claim against its 232,000 Earn users on May 22, seeking the return of $1.1 billion worth of crypto assets.
An article first appeared on CryptoSlate saying that Genesis is seeking a 100-day extension of its recovery plan after DCG failed to pay $630 million.
