Genesis Receives Plan Extension, FTX Excluded from Mediation by Judge
Genesis, a cryptocurrency lending platform, has received a plan extension from the New York Southern District Court. The extension will allow Genesis to continue its operations while it works on a plan to repay its creditors. The company had filed for Chapter 11 bankruptcy in April 2021, citing a liquidity crisis caused by the sudden drop in the value of cryptocurrencies.
The court has also excluded FTX, a cryptocurrency exchange, from the mediation process between Genesis and its creditors. FTX had filed a motion to intervene in the case, arguing that it had a significant interest in the outcome of the proceedings. However, the court ruled that FTX did not have standing to participate in the mediation process.
The exclusion of FTX from the mediation process is significant because it removes a potential obstacle to Genesis’s plan to repay its creditors. FTX had argued that it was owed $69 million by Genesis and that it should be given priority in the repayment process. However, the court’s ruling means that FTX will not be able to participate in the mediation process and will have to wait for the court’s final decision on the matter.
The court’s decision to grant Genesis a plan extension is also significant because it gives the company more time to work on a plan to repay its creditors. The company had initially proposed a plan that would have seen it repay its creditors over a period of five years. However, some of its creditors had objected to the plan, arguing that it did not provide enough information about how Genesis would generate revenue in the future.
The court’s decision to grant Genesis a plan extension means that the company will have more time to address these concerns and come up with a more detailed plan for repaying its creditors. The extension also means that Genesis will be able to continue its operations while it works on its plan, which is good news for its customers and investors.
In conclusion, the court’s decision to grant Genesis a plan extension and exclude FTX from the mediation process are both significant developments in the ongoing bankruptcy proceedings. These decisions give Genesis more time to work on a plan to repay its creditors and remove a potential obstacle to that plan. It remains to be seen what the final outcome of the proceedings will be, but these developments are certainly positive for Genesis and its stakeholders.
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- Source: Plato Data Intelligence.