? Bankrupt Crypto Lender Genesis Revised Chapter 11 Plan As The Negotiations Continue

According to a Tuesday court filing, bankrupt crypto lender Genesis has submitted an amended wind-up plan. At the same time, mediated negotiations on the monies due by parent firm Digital Currency Group (DCG) continue. The amended restructuring plan reflects strong consensus on some important areas, according to the filing, although Genesis, its creditors, and other stakeholders retain their position in continuing discussions.

The plan states that DCG and insolvent hedge fund Three Arrows Capital (3AC) claims are challenged and impaired, implying that creditors would not get the full amount of their claims. As Coincu reported, 3AC has sought to join in Genesis’ bankruptcy mediation process. DCG claims would be treated like other unsecured creditors but will not get any revenues from debts still owed by the parent company, according to the agreement. DCG said in January that it owes Genesis Capital $526 million, due in May 2023, and $1.1 billion on a promissory note due in June 2032. The complaint said that claims linked to the insolvent crypto exchange FTX and its sibling trading arm Alameda Research.