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Defi News- The procedure may not be completed in due time as should be anticipated post the rejection.
- FTX’s bankruptcy filing in November revealed the company’s financial weakness.
In a statement released earlier today, the Digital Currency Group (DCG) warned that Genesis Global’s bankruptcy procedures might go on for a long time. Genesis Global is a DCG subsidiary. The company is in trouble since its creditors rejected the bankruptcy restructuring plan that was agreed upon about two months ago.
The corporation claims it does not completely understand why the creditors pulled out of the earlier deal. But it did disclose that the procedure may not be completed in due time as should be anticipated.
The DCG statement read:
“More than two months after all parties agreed to a comprehensive settlement that was submitted by Genesis Capital to the bankruptcy court, a group of Genesis Capital’s creditors have reneged and raised all new demands. We do not know if the hundreds of thousands of individual creditors are aware of this development, but the latest maneuver will prolong the court process.”
Domino Effect
One of the first victims of the downfall of large hedge fund Three Arrows Capital (3AC) and FTX Derivatives Exchange was Genesis, which filed for bankruptcy in January.
Although 3AC’s investment gave the firm a fighting chance, FTX’s bankruptcy filing in November revealed the company’s financial weakness.
The statement released indicates that the corporation is still dedicated to quickly resolving the issue of how to pay back its debts. In order to settle a significant portion of its existing debt. The firm liquidated some of its assets as part of a deal negotiated with its creditors earlier in the year.
Genesis owes $3.6 billion to its top 50 creditors. The largest of which being the Gemini exchange, whose former Earn clients have a claim of almost $900 million.
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Source: https://thenewscrypto.com/genesis-globals-creditors-reject-earlier-accepted-restructuring-plan/