Gemini Firmly Challenges Genesis Bankruptcy Proposal: 'Lacking Detailed Substance
Gemini, along with two other creditor groups, has joined forces to voice their strong opposition to the bankruptcy resolution proposal put forward by Genesis. In a recent filing dated Wednesday, attorneys representing the cryptocurrency exchange Gemini expressed significant concerns about the lack of clarity and assurances within Genesis' proposal for resolving its bankruptcy. They contended that the proposal falls short in safeguarding the interests of key debtors involved in the proceedings.
Likewise, an ad hoc group of creditors known as the Fair Deal Group lodged an objection to the proposed plan on similar grounds. They underscored that the suggested agreement fails to adequately address the entirety of Genesis' outstanding debts, and that the viability of Genesis' ability to establish a workable plan remains unproven.
The filing from Gemini, dated August 29, 2023, revealed the existence of an "agreement in principle" among the Debtors, the Committee, and Digital Currency Group (DCG). However, the filing emphasized the lack of detailed specifics and comprehensive financial considerations within this agreement.
Genesis initiated bankruptcy proceedings in January. Their filing on August 29 hinted that unsecured creditors could potentially receive up to 90% of the USD equivalent of their holdings, though comprehensive details were not disclosed.
This recent Wednesday filing coincided with another objection presented by the Ad Hoc Group of Genesis Lenders. This group similarly expressed dissatisfaction with Digital Currency Group's role, arguing that it inadequately addresses the outstanding loan amounts.
All three parties jointly urged for the termination of a special exclusivity period, which had allowed Genesis to negotiate the terms of its bankruptcy resolution through mediations.
Gemini's filing criticized the Debtors for repeatedly assuring the imminent formulation of a plan to resolve claims against DCG, while consistently extending mediation periods, hearing dates, and bid deadlines. The filing highlighted that Gemini's predicament was worsened by Digital Currency Group's failure to fulfill its obligation to repay approximately $630 million in loans to the Debtors by May 2023.
As of now, there has been no official response from Genesis regarding these objections, as per their spokesperson.