Genesis to Exit Bankruptcy Procedure by Late May
Genesis officials plan to resolve all creditor disputes within a week and finally emerge from bankruptcy proceedings by the end of May.
At the first hearing of Genesis’ bankruptcy case on January 23 at the United States Bankruptcy Court for the Southern District of New York, its lawyer Sean O’Neal announced plans to resolve all disputes with creditors within a week. Genesis representatives expect to finally emerge from bankruptcy proceedings within four months. This was reported by Reuters.
Genesis will appoint a court-appointed mediator to resolve disputes with creditors. It has also become known that the company owes about $3.4 billion to over 100,000 creditors. Most of them are Gemini Earn users. Genesis owes about $766 million.
Genesis’ assets and debts to the company are worth just over $5 billion, with almost $1.65 billion of that coming from the company’s parent company, Digital Currency Group (DCG). A $575 million loan expires in May, and another $1.1 billion was received by DCG from Genesis as a promissory note maturing in ten years.
Genesis intends to raise the remaining funds to pay its obligations during the auction, where some of the company’s assets will be sold. Recall that bankruptcy proceedings were filed last week and affected only Genesis’ credit divisions.