Crypto Lender Genesis Global Files Amended Chapter 11 Plan with Details on Creditor Recoveries

On Thursday, February 15, 2024, Genesis Global Holdco, LLC, along with its affiliated debtors, filed an amended chapter 11 plan with the United States Bankruptcy Court for the Southern District of New York.

Genesis Global Holdco and its subsidiaries Genesis Global Capital and Genesis Asia Pacific had filed for bankruptcy protection in January 2023. They are involved in cryptocurrency lending and provide financing services to both individual and institutional investors.

The amended plan further outlines the debtors’ path to exit chapter 11 bankruptcy. It proposes how different classes of creditors will be treated and paid back depending on the priority of their claims. Administrative expenses like legal and professional fees would be paid in full on the effective date of the plan. Priority tax and wage claims are also provided for.

Unsecured creditors are grouped into different classes based on the type of digital assets or fiat currency their claims are denominated in. Creditors with bitcoin, ether, stablecoin or fiat currency claims are in one class, while those with alternative coin claims are in another. The plan specifies how much of a recovery these creditors can expect to receive, likely in the form of digital assets, cash or stock in the reorganized company.

Two major settlements with creditors Three Arrows Capital and Alameda Research are also incorporated into the plan. These settlements established allowed unsecured claims of $33 million and $175 million respectively in exchange for agreeing to support the debtors’ restructuring.

Key steps in the debtors’ proposed plan include the creation of reserve accounts to pay disputed claims, the vesting of estate assets in the reorganized companies upon emergence, and the appointment of a distribution agent to distribute assets to creditors. However, the plan is still subject to approval by the bankruptcy court at a confirmation hearing likely to be scheduled in the coming months. Creditors will have the opportunity to vote on and object to the plan before then.

Please contact BlockTribune for access to a copy of this filing.