Mediation Period for Bankrupt Crypto Firm Genesis Nearing End, Deal Uncertain
Mediation between bankrupt cryptocurrency lender GenesisGlobal Holdco and creditors is set to conclude by August 16, but a deal is yet not certain.
Speaking during a hearing before US Bankruptcy Judge Sean Lane, company lawyer Sean O'Neal said the mediation period would not be extended if the company does not make significant progress towards a deal within the next two weeks.
“If we do not make substantial progress with respect to a deal in principle in the next two weeks, we do not believe that we will be seeking to extend the mediation further,” O'Neal reportedly said.
Since May, Genesis has been engaged in discussions with key stakeholders, such as parent company Digital Currency Group and Gemini Trust, in an effort to create a proposed bankruptcy exit plan supported by DCG.
Genesis' official committee of unsecured creditors has rejected the plan, but Genesis and other key stakeholders are still advocating for the plan.
In the event that an agreement is not reached by August 16, the crypto lender will proceed with its existing bankruptcy plan, albeit with certain amendments, O'Neal informed the court.
The mediation represents one of the final steps for Genesis in emerging from bankruptcy.
"At a certain point, we need to move forward," O'Neal said.
Bankrupt crypto exchange FTX and now-defunct crypto lender Genesis have recently come to an agreement to settle their disputes within their bankruptcy cases.
The agreement was disclosed in a letter submitted by their legal representatives to the US bankruptcy court for the Southern District of New York on Thursday.
"The Parties have reached an agreement in principle, subject to documentation, regarding a settlement that would resolve, among other things, the claims asserted by the
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