Gemini ‘supportive’ of Genesis Mediation, but frustrated over pacing

Genesis Crypto and its primary creditor group have agreed to a 30-day mediation procedure in order to go ahead with a final restructuring plan, while one business has expressed “frustration” with the speed of development.

Genesis, its parent firm Digital Currency Group (DCG), its Unsecured Creditors Committee (UCC), and Gemini consented to a 30-day mediation procedure in court on April 30, Gemini tweeted. 

Gemini said that its goal is to “drive to a final resolution as soon as possible,” and it is “supportive” of mediation. Gemini, on the other hand, said that it had “expressed our frustration” with “the pace of progress among the parties and the need for urgency.”

The mediation will focus on a planned bankruptcy departure plan presented in February, which anticipated creditors recovering 80% of lost cash. The idea is supported by DCG, but the UCC rejected the restructuring agreement because it wanted better conditions.

Genesis is scheduled to appear in bankruptcy court again on May 4. Genesis’ lawyer, Sean O’Neal, said in court on April 30 that the company expects to have two mediation sessions before May 8, with the final details of the agreement made public following the mediation period.

Genesis and the UCC will need to choose a mediator. O’Neal said that possible mediators have begun to be contacted and that the procedure would be explained to the court once one is chosen.

When Genesis submitted their application for mediation on April 25, DCG conveyed its opinion on the topic. The crypto conglomerate said that the deal would “prolong the court process” owing to the increased demands and that it was “difficult to understand the rationale” of Genesis creditors since they had provided “limited engagement” since the February proposal was suggested.

Genesis filed for Chapter 11 bankruptcy in a New York District Court in January, placing its liabilities at $1 billion to $10 billion and its assets at the same amount. The crypto lender was one of numerous enterprises affected by liquidity concerns after the demise of FTX.