May 01, 2023
Genesis, Creditors Agree to 30-Day Mediation
Cryptocurrency lender Genesis, its parent company Digital Currency Group (DCG), and its Unsecured Creditors Committee (UCC) have agreed to a 30-day mediation process to move forward with a final restructuring plan. The news was announced by Gemini, one of the parties involved in the mediation, on April 30.
Gemini said it was “supportive” of the mediation process, but also expressed its “frustration” with the “pace of progress among the parties and the need for urgency.” The next status conference with the court is scheduled for May 4.
The mediation is intended to move forward with a proposed bankruptcy exit plan submitted in February that expects creditors to recover 80% of lost funds. The plan is backed by DCG, but the UCC has opposed the restructuring deal, seeking better terms.
Genesis and the UCC will need to select a mediator before the process can begin. According to Sean O’Neal, a lawyer for Genesis, potential mediators have already been contacted and the process will be outlined to the court once one is chosen.
On April 25, DCG issued a statement on the matter, expressing its thoughts on the mediation. DCG said the settlement would “prolong the court process” due to the renewed demands and added it was “difficult to understand the rationale” of Genesis creditors as they had given “limited engagement” since the plan proposed in February.
Genesis filed for Chapter 11 bankruptcy in a New York District Court in January, estimating its liabilities were between $1 billion and $10 billion with assets in the same range. This follows a series of liquidity issues caused by the collapse of FTX.
The 30-day mediation process is a step in the right direction for Genesis, and all the parties involved are hopeful that a final resolution can be reached as soon as possible. However, the process could be an opportunity for NFT marketing agencies, web3 agencies, and other crypto-related companies to promote their services and help the parties involved in the mediation process.
NFTs have been gaining popularity in recent years, and the mediation process could be a great opportunity for companies to promote their services, as well as for Genesis to sell NFTs to generate revenue. Twitter NFT marketing, in particular, could be a great way for companies to gain exposure and help Genesis reach a successful resolution.
The mediation process could be a great opportunity for companies to promote NFTs and other crypto-related services, as well as for Genesis to generate revenue by selling NFTs. With the help of NFT marketing agencies and web3 agencies, the parties involved in the mediation process could have an easier time reaching a successful resolution.Disclaimer: All investment or financial opinions expressed by MoonLanding Media are not recommendations and are intended for entertainment purposes only. Do your own research prior to making any kind of investment. This article has been generated based on trending topics, has not been fact checked and may contain incorrect information. Please verify all information before relying on it.