n the United States Bankruptcy Court for the Southern District of New York, Genesis Global Holdco (GGH) and two lending-related subsidiaries, Genesis Global Capital and Genesis Asia Pacific Pte. Ltd filed for Chapter 11 bankruptcy protection.
According to the announcement, “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.”
Yesterday, reports came in with speculation that Genesis is preparing to file for bankruptcy. The US SEC already charged Gemini and Genesis for selling unregistered securities to the public, bypassing disclosure requirements designed to protect investors.
More than 100,000 creditors, between $1 billion and $10 billion in liabilities and assets were estimated by Genesis Global Capital. The assets and liabilities of the other two companies were believed to be between $100 million and $500 million range, respectively.
Genesis has put up a road map for getting out of debt that includes a plan that outlines a framework for the settlement of all claims worldwide through establishing a trust that would distribute assets to creditors.
In order to pursue a sale, capital raise, and/or equitization transaction that would allow Genesis to emerge under new ownership, the strategy envisages a dual-track process.
Read more: cryptotimes.io