First Hearing Regarding Genesis Bankruptcy Announced

  • The first hearing date of Genesis Capital’s case has been announced. 
  • DCG denies any role in the Genesis bankruptcy case. 
  • Now defunct Genesis has $150 M in cash, as reported. 

According to court documents, the first hearing on Genesis capital’s bankruptcy case will take place in the last week of January. 

On January 19, Genesis, a crypto lending firm and two other subsidiaries tangled in the lending sector, Genesis Asia Pacific and Genesis Global Capital, filed for bankruptcy under chapter 11 protection. 

As reported, the three corporations, as mentioned above, together have around 100,000 individuals they owe to. The firm estimated liabilities of $1 billion to $10 billion and assets in a similar range, according to a January 19 court filing.

Following a recent court confirmation, a hearing on the now-disputable Genesis bankruptcy case will take place on January 23 at 2:00 PM EST. The case will be investigated in the Southern District Court of New York and presided over by Judge Sean H. Lane.

As a first step in the bankruptcy legal proceedings, the court will figure out on the hearing whether or not to approve the chapter 11 relief sought by Genesis Capital.

DCG denies involvement

According to a media report of January 19, the now-defunct crypto lending firm  mentioned, “Genesis and its advisors have been engaged in ongoing, productive discussions with advisors to its creditors and corporate Digital Currency Group (DCG) to evaluate the most effective path to present assets and move the business forward.” 

Reportedly, a report released by DCG on January 20 in which it denies having any involvement in Genesis Capital’s bankruptcy case. 

Genesis’s parent company, DCG, mentioned in the statement, “Genesis has its own independent management team, legal counsel, and financial advisors, and appointed a special committee of independent directors, who are in charge of the Genesis Capital restructuring, and who recommended and decided that Genesis Capital file chapter 11.” 

The firm added further, “  Neither DCG nor any of its employees, including those who sit on the Genesis board of directors, were involved in the decision to file for bankruptcy.”

Derar Islim, Interim Chief Executive Office of Genesis, said that, “While we have made significant progress refining our business plans to remedy liquidity issues caused by the recent extraordinary challenges in our industry, including the default of Three Arrows Capital and the bankruptcy of FTX.” He added further, “ We deeply appreciate our clients’ ongoing patience and partnership as we work towards an equitable solution.”

Notably, DCG owes around “$526 million to Genesis Capital due in May 2023” and $1.1 billion under the promissory note due in June 2032. As reported, Genesis has over $150 million in cash available, which will bring satisfactory liquidity to support its ongoing business operations and ease the restructuring process.