Genesis to enter mediation with creditors to continue restructuring plan
Several creditors recently walked away from an earlier agreement.
Genesis will enter mediation with its creditors in order to maintain its proposed restructuring plan, Bloomberg said on April 28.
According to Genesis’ lawyer, Sean O’Neal, Genesis will engage in a 30-day mediation process with its committee of unsecured creditors.
The process will involve two main mediation sessions prior to May 8, and the terms of the resulting agreement will be publicly disclosed after mediation concludes. Genesis and its creditors must also agree on a mediator together.
Reports from April 25 indicate that multiple Genesis creditors walked away from an earlier agreement. Certain creditors are opposed to details of how Genesis’ parent company, Digital Currency Group (DCG), will contribute to the restructuring plan.
In the latest Bloomberg report, creditor committee lawyer Philip Abelson suggested that the creditors’ involvement in the mediation process should not be “misconstrued” in any way — presumably meaning that creditors still do not approve of Genesis’ plans.
Genesis originally filed for bankruptcy protection on Jan. 19, 2023. Unlike many other failed crypto companies, only the company’s lending arm filed for bankruptcy, meaning that Genesis’s other services continue to operate as usual.
The company owed more than $3.5 billion to its creditors in January.