20/01/2023 05:44 PM

KUALA LUMPUR, Jan 20 (Bernama) -- Genesis Global Holdco, LLC (‘Genesis’ ‘GGH’ or the ‘company’, an industry pioneer and digital currency prime brokerage, has announced strategic actions to achieve a global resolution to maximize value for all clients and stakeholders and strengthen its future business.

As previously announced, Genesis and its advisers have been engaged in ongoing, productive discussions with advisers to its creditors and corporate parent Digital Currency Group (’DCG’) to evaluate the most effective path to preserve assets and move the business forward.

Genesis has now commenced a court-supervised restructuring process to further advance these discussions and reach a holistic solution for its lending business, which, if achieved, would provide an optimal outcome for Genesis clients and Gemini Earn users.

Genesis Global Holdco, LLC and two of its lending business subsidiaries, Genesis Global Capital, LLC (‘GGC’) and Genesis Asia Pacific Pte Ltd (‘GAP’), filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York (the ‘court’). Genesis’s other subsidiaries involved in the derivatives and spot trading and custody businesses and Genesis Global Trading are not included in the filing and continue client trading operations.

As part of its Chapter 11 filing, Genesis has proposed a roadmap to an exit including a Chapter 11 plan (the ‘plan’) that calls for a framework for a global resolution of all claims through, and the creation of, a trust that will distribute assets to creditors.

The company will initiate a marketing and sale process to monetise GGH’s assets or otherwise raise capital, using the transaction proceeds to pay creditors fairly and equitably. If the marketing process does not result in a sale or capital raise, creditors will receive ownership interests in Reorganized GGH.

All aspects of the restructuring process will be overseen by an independent special committee of the company’s board of directors.

“While we have made significant progress refining our business plans to remedy liquidity issues caused by the recent extraordinary challenges in our industry, including the default of Three Arrows Capital and the bankruptcy of FTX, an in-court restructuring presents the most effective avenue through which to preserve assets and create the best possible outcome for all Genesis stakeholders,” said Derar Islim, Interim CEO, Genesis in a statement.

Genesis has more than US$150 million in cash on hand which will provide ample liquidity to support its ongoing business operations and facilitate the restructuring process. (US$1 = RM4.297)

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