- June 13, 2023
- Posted by: admin
- Category: BitCoin, Blockchain, Cryptocurrency, Investments
Genesis Capital filed an updated reorganization plan on June 13, days after the bankruptcy court extended mediation talks with relevant stakeholders to August 2.
It is an updated version of the initial wind-up plan submitted by the collapsed crypto lender in January as part of its bankruptcy proceedings. It essentially splits up debtors and proposes individually tailored compensation plans for them.
According to the filing, Genesis has reached a “substantial agreement on certain key issues” with its debtors, creditors and other stakeholders — including parent company DCG. However, the mediated discussions remain ongoing and have yet to reach a proper conclusion.
‘Impaired claims’
According to the filing, the claims submitted by DCG and Three Arrows Capital (3AC) against Genesis are disputed and considered “impaired.”
As such, DCG claimants are considered unsecured creditors and will not be given the right to vote and are automatically assumed to have rejected the plan. Additionally, these claimants will not be entitled to any DCG recoveries and Avoidance recoveries arising from action taken against DCG.
Similarly, 3AC claimants will also be treated as unsecured creditors and are not entitled to voting on the plan or recoveries arising from action against 3AC.
FTX claims
Genesis also categorized all claims made by FTX and its sister firm Alameda Research as disputed and will treat claimants as unsecured creditors with no voting rights on the plan.
Additionally, the plan stipulates that FTX and Alameda claimants should not be allowed to benefit from the recovery of fraudulent transfers — essentially requesting to eliminate the companies from its list of debtors.
Meanwhile, FTX filed a motion on June 13 to have its claims adjudicated by the Delaware Bankruptcy Court, which is overseeing its own case.
The Genesis case is currently being adjudicated by the South District Court of New York.
The post Genesis Trading files updated reorganization plan appeared first on CryptoSlate.
