Multiple Genesis Capital creditors walk away from agreement – DCG responds

An unnamed group of Genesis Capital creditors has filed new demands and departed from a previous agreement with the bankrupt cryptocurrency company.

Genesis Capital wants court to appoint mediator

In an April 24 court filing, bankrupt cryptocurrency lenders filed for the appointment of a sitting bankruptcy judge for the Southern District of New York to act as an arbitrator in disputes with creditors, including cryptocurrency exchange Gemini. Did.

according to filingthe mediator is “needed to assist the mediators in reaching a resolution of one of the most important issues in these Chapter 11 proceedings: the amount of the Digital Currency Group (DCG) contribution to the debtor , format, timing, and other conditions of the restructuring plan.”

“By seeking the benefit of arbitration, the debtor will resolve and narrow down any outstanding issues that may otherwise need to be adjudicated in these Chapter 11 cases and, in doing so, that We want to avoid additional costs and delays that may result from such litigation.”

Meanwhile, Genesis said its parent company owed $630 million in debt in the second week of May.

DCG responds

In a statement dated April 25, DCG noted that some unnamed Genesis Capital creditors did not agree to previous settlements reached by the bankrupt company.

DCG Said:

“Given the limited involvement of Genesis’ creditors since the February court filing, it is difficult to see the rationale, but some creditors have moved away from previous agreements. I don’t know if hundreds of thousands of creditors are aware of this development, but the latest ploy will prolong the court proceedings.”

The company added that it remains committed to providing a fair outcome for all creditors. But it said it would consider new requests for previous concessions.

Multiple Genesis Capital creditors post out of agreement – ​​DCG’s response first appeared on CryptoSlate.