Genesis Capital is Updated reorganization plan June 13, days after the bankruptcy court extended mediation talks with relevant stakeholders until August 2.
This is an update to the original liquidation plan filed in January by the failed crypto lender as part of its bankruptcy proceedings. It basically divides the debtor and proposes an individually tailored compensation plan.
Genesis has reached “substantial agreements on certain material matters” with its debtors, creditors and other interested parties, including parent company DCG, according to the filing. However, discussions through arbitration are ongoing and have not yet reached a proper conclusion.
“Claim for damages”
Claims filed against Genesis by DCG and Three Arrows Capital (3AC) are disputed and are deemed to be “impaired,” according to the filing.
As such, DCG claimants are considered unsecured creditors, do not have voting rights, and are automatically deemed to have rejected the plan. In addition, these complainants are not entitled to recovery and circumvention of her DCG resulting from actions taken against the DCG.
Likewise, 3AC’s claimants are treated as unsecured creditors and have no right to vote on plans or collections arising out of litigation against 3AC.
FTX claims
Genesis will also classify all claims by FTX and its sister company Alameda Research as pending, treating the claimants as non-voting, unsecured creditors to the plans.
The plan also stipulates that FTX and Alameda claimants should not be allowed to profit from the collection of fraudulent transfers, effectively requiring both companies to be removed from the debtor list.
Meanwhile, on June 13, FTX filed a petition to have its claims ruled in the Delaware Bankruptcy Court, which oversees its litigation.
The Genesis case is currently being decided in the Southern District Court of New York.
The updated restructuring plan for the Genesis Trading file was first posted on CryptoSlate.
