Genesis Global Holdco has received approval from the US Bankruptcy Court for the Southern District of New York for all the first-day motions related to its Chapter 11 filed on January 19, 2023.
Last week, Genesis filed for bankruptcy protection after a period when it was unable to fulfill redemption requests. This decision also impacted Gemini, a digital asset platform that utilized Genesis to power its Earn product, causing a very public dispute between the two firms.
In a public statement, Derar Islim, Interim CEO of Genesis, commented on the first step in a long journey:
“We commenced an in-court restructuring after thoroughly evaluating all potential options with our advisors. We firmly believe that this process represents the best path to continue advancing the ongoing, productive conversations with our stakeholders to identify an equitable solution. We are pleased by the court’s approval of our first day motions, which enable Genesis to continue serving our trading clients while we move through our restructuring on a parallel track. I am proud to be a part of our dedicated and talented team through the restructuring and beyond as we work together to strengthen our business for the future.”
Genesis also noted that all aspects of the restructuring process are being overseen by an independent special committee of the company’s board of directors.
Genesis has also proposed a plan for a framework for a global resolution of all claims through a trust that will distribute assets to creditors.
Following the news that Genesis had filed for bankruptcy protection, Cameron Winklevoss, a Gemini co-founder, Tweeted that he hoped DCG, parent company of Genesis, and Barry Silbert, its founder, will make a fair offer to creditors.
7/ Meanwhile, we will use every tool available to us in the bankruptcy court to maximize recovery for Earn users and any other parties within the bankruptcy court’s jurisdiction.
— Cameron Winklevoss (@cameron) January 20, 2023