A judge in Genesis’s bankruptcy case has extended the date by which the company must file a recovery plan, according to a June 5 filing.
Genesis Receives Plan Extension
Genesis is currently in bankruptcy proceedings. On May 19, the company requested a 100-day extension to the deadline for filing its recovery plan.
Now, US Bankruptcy Judge Sean Lane has granted that request. The relevant June 5 The court filing says Genesis now has until August 2, 2023 to file its plan. The company originally planned to extend the period to August 27.
The extended deadline is dependent on the company’s continued cooperation with its official committee of unsecured creditors toward a plan. The Committee may request a motion to end the extended tabling period with seven days’ notice if discussions fail.
Additionally, Genesis’ exclusive solicitation period has been extended to October 1 (rather than October 26 as originally requested). Genesis may also research other extensions in the future.
FTX cannot participate in mediation talks
FTX, a creditor in Genesis’ bankruptcy, recently filed an objection to Genesis’ extension request. FTX also complained about its exclusion from the mediation talks.
Bloomberg reported June 5 that Judge Lane has now denied FTX’s claim. The judge said there must be “some radio silence” in any mediation process. He also said that reducing the duration of the mediation will not help the case to end sooner.
Genesis mediation discussions are very private. Bloomberg’s report suggests that Genesis is primarily engaged with its parent company, Digital Currency Group.
In its earlier complaint, FTX also claimed that Genesis owed it nearly $4 billion, contrary to Genesis’ estimate of $0.00. The judge will make a decision on this at an upcoming hearing, according to Bloomberg’s latest report.
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