One of the latest big names in crypto to go under, Genesis, filed for bankruptcy on the 20th of January. However, unlike other high-profile cases, the company’s asset book doesn’t look that bad.
In fact, recent reports claimed that creditors might receive at least a portion of their funds soon.
Restructuring Plan Already on the Table
A lawyer for Genesis went on record stating his belief that disputes with creditors can be resolved within a week and bankruptcy proceedings can be worked out by the end of May 2023.
Sean O’Neal, one of Genesis’ lawyers, told the Manhattan court during a preliminary hearing that he was “cautiously optimistic” about talks with creditors and hoped an agreement could be reached in good will with creditors within a week. This, in turn, would allow the court to focus on laying out conditions for Genesis to return to form and exit bankruptcy proceedings, as reported by Reuters.
“Sitting here right now, I don’t think we’re going to need a mediator. I’m very much an optimist.”
Brian Rosen, a lawyer on the other side of the fence representing unnamed creditors with over $1.5 billion in claims against Genesis, was more cautious than optimistic. However, Rosen acquiesced that negotiations are already being done between them and that the two parties are getting closer to an accord.
Assets and Liabilities Enough to Cover Debts
Unlike FTX and other companies who went under with more debts than assets to their name, it seems Genesis – in spite of market troubles – could actually be solvent soon enough if things work out.
Genesis Global Capital reportedly owes at least $3.4 billion to a group of over 100,000 creditors. However, if all assets and liabilities are taken into account, Genesis allegedly controls slightly more than $5 billion, potentially leaving them $1.6 billion in the green.
Unfortunately, about $1.7 billion of these assets and liabilities are in claims against Genesis’ parent company, the Digital Currency Group.
Coincidentally, the next maturity of Genesis’ loan to its parent company DCG is in May 2023, according to DCG CEO Barry Silbert, who also commented on an amount that looks a lot like the total sum claimed by Genesis against DCG. May 2023 is, as stated above, the month Genesis’ lawyers estimate they can end their bankruptcy proceedings.
“DCG did not borrow $1.675 billion from Genesis. DCG has never missed an interest payment to Genesis and is current on all loans outstanding; next loan maturity is May 2023.”
It’s still too early to be sure if Genesis will genuinely reach the speedy resolution they are eyeing. However, if their asset books are any indication, the company may be the first former crypto giant to resolve its issues and come back in a functional form.
The post Genesis Believes Creditor Disputes Can Be Resolved This Week: Report appeared first on CryptoPotato.