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Cryptocurrency lender Genesis and its key group of lenders have agreed to a 30-day mediation process in an attempt to move forward with a final restructuring plan, although one company expresses “disappointment” at the pace of progress.
On April 30, Gemini tweeted that Genesis, its parent company Digital Currency Group (DCG), its Unsecured Creditors Committee (UCC), and Gemini have agreed to a 30-day mediation process in court on April 28.
Gemini stated that her goal is “to come to a final decision as soon as possible and that she is ‘supportive’ of mediation. Gemini, however, added that it “expressed our disappointment” at “the pace of progress between the parties and the urgent need.”
2/ Gemini is supportive of mediation and working with the parties to bring this to a conclusion. We have also expressed our frustration on the record on the pace of progress among the parties and the need for urgency. The next status conference with the Court will be on May 4th.
— Gemini (@Gemini) April 30, 2023
The mediation should advance a proposed bankruptcy exit plan unveiled in February that expected creditors to recoup 80% of lost funds. The plan is backed by DCG, but UCC opposed the restructuring deal, wanting better terms.
Genesis will next appear in bankruptcy court on May 4th. Sean O’Neill, a lawyer for Genesis, said in court on April 30 that the company hopes to hold two mediation sessions by May 8, with the final terms of the deal to be made public after the mediation. period.
Genesis and UCC must select a mediator. O’Neill said potential middlemen have begun to be contacted and the process will be set out in court once one is selected.
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On April 25, DCG expressed its thoughts on the matter when Genesis filed a mediation petition.
DCG Statement on Genesis filing Motion for Mediation: pic.twitter.com/pRluUnL49C
— Digital Currency Group (@DCGco) April 25, 2023
The crypto conglomerate said the settlement would “prolong the lawsuit” due to the new requirements and added that it was “difficult to understand the rationale” of Genesis creditors as they gave “limited participation” after the plan proposed in February.
Genesis filed for Chapter 11 bankruptcy in New York District Court in January, valuing its liabilities at $1 billion to $10 billion with assets in the same range.
The crypto lender was one of several firms that faced liquidity issues after the FTX collapse.
