This week, there were also two important developments regarding the FTX Group’s and Three Arrows Capital’s claims against Genesis. Genesis and DCG owe Earn users more: more expediency and more consideration. The Debtors’ continuous extensions and postponements and lack of visibility has significantly delayed the return of Earn users’ assets to them for over eight months. (DCG) will be announced on the eve of the Disclosure Statement hearing without sufficient time for creditors, including Earn users, to evaluate it (see July 14th update, below). Gemini remains concerned with the possibility that a potential deal between Genesis and Digital Currency Group, Inc. The hearing is now scheduled for August 4th. Gemini will continue to push for Genesis, the UCC, and the AHG to disclose the supposed deal that they have been keeping secret so that all creditors can evaluate it in the lead up to the hearing on August 11th.įor a third time, Genesis adjourned the hearing on the adequacy of information in its Disclosure Statement and on the solicitation and the voting procedures with respect to Genesis’s Amended Plan. The smaller the FTX claim, the better recoveries for all creditors, including Earn users. This resolution in principle marks a substantial step forward in the Genesis restructuring and signals an agreeable reduction of FTX’s $3.7 billion claim on the Genesis estate. On a positive note, Genesis and the FTX estate submitted a letter to Judge Lane advising the Court that Genesis and FTX have reached an agreement in principle regarding the crossing claims that FTX and Genesis have asserted against one another. Gemini continues to believe that creditors, and the confirmability of whatever plan might come out of mediation, would be best served by immediately understanding the current proposals. Gemini remains frustrated with Genesis, the Unsecured Creditors Committee (UCC), and the Ad Hoc Group (AHG) for being unable to advance or disclose the purported deal that was “close” two weeks ago. This aligns with the hearing on the adequacy of information in the Disclosure Statement and on the solicitation and the voting procedures with respect to Genesis’s Amended Plan, which has now been adjourned for a 4th time and is now scheduled for August 11th. Genesis is seeking a 7th extension to the mediation period, this time until August 10th.
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