A lawyer representing Genesis Global Capital believes that the crypto lender could resolve its disputes with creditors this week and eventually exit Chapter 11 bankruptcy by late May.
Creditors of financially embattled Genesis Global Capital could soon agree on what is owed by the crypto lender and how to settle it.
According to a Reuters report, Sean O’Neal, a lawyer representing Genesis Global, is confident that pending disputes between the company and creditors could be resolved by the end of this week. The early resolution with creditors could allow Genesis Global to emerge from Chapter 11 by late May.
Mr O’Neal added that Genesis had ‘some measure of confidence’ that the disputes would be resolved after two months of intense negotiations. He added that Genesis would consider mediation if necessary.
‘Sitting here right now, I don’t think we’re going to need a mediator. I’m very much an optimist,’ Mr O’Neal reportedly said at an initial hearing in Manhattan’s bankruptcy court.
Negotiations with Genesis’ Creditors Will Depend on a Deal with the Winklevosses
To note is that Genesis Global’s largest creditor is the Gemini Exchange, owned by the Winklevoss twins. Initial reports indicated that Gemini customers had an estimated $700 million tied to the crypto lender. However, its bankruptcy filing stated that the figure was a little above that amount at $765.9 million, making up the bulk of the $3.6 billion Genesis Global owes its top 50 creditors.
Back in late December and before Genesis Global filed for bankruptcy, Gemini’s co-founder and president, Cameron Winklevoss, tweeted that the crypto exchange, through its financial advisor, Houlihan Lokey, had presented a plan ‘to resolve the liquidity issues at Genesis and DCG and provide a path for the recovery of assets.’
No additional information was provided about the plan at the time. But earlier this month, Mr Winklevoss accused DCG’s founder and CEO, Barry Silbert, of misleading investors into believing that the company had absorbed massive losses that Genesis incurred due to the collapse of the Three Arrows Capital crypto hedge fund. He also requested the DCG’s board to fire Mr Silbert and replace him with someone who will ‘right the wrongs that occurred under Barry’s watch.’
Consequently, given the history between DCG and the Gemini exchange, an early resolution to the Genesis situation will be highly reliant on an agreeable deal between the two entities and their top executives.
~By John P. Njui~