Make at least 50.000$ monthly trading crypto Follow professional Trading signals for FREE. I'm going in!

Genesis bankruptcy case set for first hearing

3 min reading

Start making MONEY trading crypto! Follow professional Trading signals for FREE >>> JOIN

According to court filings, the first hearing in Genesis Capital's bankruptcy case will be scheduled on January 23.

Powered by Froala Editor

According to court filings, the first hearing in Genesis Capital's bankruptcy case will be on January 23 at 2:00 p.m. Eastern Time. The case will be heard by Judge Sean H. Lane of the United States Bankruptcy Court for the Southern District of New York.

Companies in Chapter 11 bankruptcy can submit a restructuring plan to creditors while continuing to operate, according to Mark Pfeiffer, a bankruptcy attorney at the law firm Buchanan Ingersoll & Rooney.

The court will decide whether to grant the relief sought by Genesis Global Holdco and two of its lending business subsidiaries, Genesis Global Capital and Genesis Asia Pacific, collectively known as Genesis Capital, under Chapter 11 as the first step in the bankruptcy proceedings. The companies also asked for a combined administration of the cases.

The United States Trustee will also appoint a committee for unsecured creditors as part of the proceedings. The committee will have the authority to request a consultation with the companies before making significant decisions or modifications and to take part in the restructuring plan. The court filings state that the committee usually consists of twenty of the biggest unsecured creditors.

On January 19, more than two months after revealing a $175 million exposure to FTX and liquidity issues brought on by the collapse of the crypto exchange, the companies filed for bankruptcy protection, stating liabilities up to $10 billion. Since November 16, withdrawals from the Genesis Global Capital platform have been stopped.

According to a news release, the Genesis Chapter 11 plan asks for a complete settlement of all claims and the establishment of a trust that will distribute assets to creditors. The companies will pursue the "sale, capital raise, and/or an equitization transaction" that would purportedly allow their business "to emerge under new ownership" as part of a "dual track process."

Digital Currency Group (DCG), Genesis Capital's parent company, reportedly refused to take part in the bankruptcy filing, alleging that a special committee of independent directors had recommended and agreed to file for Chapter 11 bankruptcy protection. Only the lending organizations for Genesis have requested bankruptcy protection. Genesis Global Trading and Genesis' spot and derivatives trading entities will continue to operate.

ALSO READ- Can Ethereum Price Holding Above $1,600 Set the Stage for $2,000 Next Week?

Currency Exchange rate Buy cryptocurrency

TradingSignals News
Start making MONEY trading crypto! Follow professional Trading signals for FREE >>> JOIN

Dear customer,

We use cookies to provide our services correctly and safely. Cookies are small text-based data sets that shall be saved on the device you are using in connection with the use of this instnat website. Cookies are created in order to ensure proper functioning of thes instant website. By clicking the button "I accept and go to the website", you implicitly agree to creation of the cookies on your computer and to deploy automatic tracking and data collection and processing on behalf of the ( Click the above-captioned button is also tantamount to accepting website's privacy policy. Closing the notification by means of "X" is unequivocally connected with your consent. If you do not agree to any of the above, please discontinue using our Website.

“Cookies” shall make an identification of the software used by you and to customization of this instant website to your needs. Cookies contain the name of the domain from which they origin, duration of period of their storage on your computer and an assigned value.

Third party cookies:
We also use third-party cookies for the following purposes:

  • creating statistics - helping to understand the way Users use the Website, which allows to improve its structure and content with use of the analytical tools
  • defining a user profile - in order to display custom-tailored content in advertising networks.

External entities that might be source of any third-party cookies on this instant Website are as follows:

Using a settings of your web browser or by using pre-set configuration tools available in our service you can independently and at any time change the settings concerning your use of the “cookies”, specifying the conditionsof their storage and how your device is creating and downloading them. These settings can be changed to block the automatic handling of cookies in the settings of your web browser or inform about their placement on your device each time.

Detailed information about the options related to use of “cookies” is available in the settings of your software (web browser).

Service privacy policy

This instant document lays out the principles of the Privacy Policy on the website (hereinafter referred to as the "Website" or "Service"). The administrator of the Website is c/o Fintech Labs Global Solutions, Unit 303, Ile Du Port, Mahe, Seychelles

The full document to read the TradingSignals privacy policy is available in this document.

Advanced settings can be changed in your browser.