Bankrupt crypto lender Genesis Global Holdco LLC has extended its mediation with creditors for the last time, a company lawyer said during a hearing Wednesday.
(Bloomberg) — Bankrupt crypto lender Genesis Global Holdco LLC has extended its mediation with creditors for the last time, a company lawyer said during a hearing Wednesday.
“If we do not make substantial progress with respect to a deal in principle in the next two weeks, we do not believe that we will be seeking to extend the mediation further,” company lawyer Sean O’Neal told US Bankruptcy Judge Sean Lane. As a result, the talks will have to wrap up by Aug. 16.
Genesis has been in mediation with key stakeholders — including parent company Digital Currency Group and Gemini Trust Co. — since May. They’re trying to save a proposed bankruptcy exit plan backed by DCG that was rejected by its official committee of unsecured creditors.
If the parties don’t come to a deal by Aug. 16, the crypto lender will move forward with its existing bankruptcy plan, subject to certain amendments, the lawyer said. The mediation is one of the final hurdles preventing Genesis from wrapping up its time in bankruptcy.
“At a certain point, we need to move forward,” said O’Neal. He said during a hearing the parties are “very close” to a deal, but acknowledged he has said that before.
The case is Genesis Global Holdco, LLC, 23-10063, US Bankruptcy Court, Southern District of New York (Manhattan).
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