This extension includes a provision for the Unsecured Creditors Committee’s (UCC), the Ad Hoc Group of Creditors (AHG), or Gemini to terminate in the event that Genesis stops cooperating on the further development or advancement of a Plan. June 5th Omnibus Hearing During the June 5th Omnibus Hearing, Judge Lane granted Genesis’s request for a 75-day extension to its period of exclusivity to propose an amended Plan of Reorganization (Plan). Genesis’s reconciliation and allowance or disallowance of all claims is a necessary step to bringing recoveries to creditors. Gemini is cooperating with Genesis in connection with Genesis’s review of claims filed by Earn users.
Gemini fully supports the Genesis estimation motion regarding the FTX and Alameda claims and views estimation of the FTX and Alameda claims as a critical and essential step to ensuring that Genesis returns assets to Earn users as promptly as possible. A further hearing is scheduled for July 6, 2023. Judge Lane directed the parties to meet and confer on a process and develop a better factual record to identify relevant issues. In parallel Gemini is working with Genesis and the other parties on proposed Plan provisions to best position Earn users to recover assets from Genesis.Īt a Jhearing, Judge Lane heard from Genesis and FTX Group on a pair of motions addressing the FTX Group’s $3.7 billion preference claim against Genesis. The mediation extension permits productive discussions to continue regarding DCG’s contribution to the Genesis bankruptcy. (DCG), filed a notice extending the mediation period by another week to June 23, 2023. On Friday, Genesis, with the consent of Gemini, the Unsecured Creditors Committee (UCC), the Ad Hoc Group of Creditors (AHG), and Digital Currency Group, Inc. On Tuesday, we wrote about the proposed Plan that Genesis filed in an effort to keep its confirmation schedule (see below). There are three important updates for Earn users this week: Genesis and DCG owe Earn users more than these continuous deadline extensions. Gemini is frustrated that Earn users have been separated from over $1.122 billion in assets loaned to Genesis for over seven months. Should the mediation fail, Gemini supports Genesis taking steps to immediately recover these funds from DCG. DCG owes Genesis over $630 million that came due in early May. Gemini is disappointed in how long it has taken to negotiate a DCG contribution and we are committed to pushing DCG to pay what it already owes to Genesis and to compensate the Earn lenders for the role that DCG had in Genesis’s failure to return Earn assets to the Earn users. A higher contribution from DCG will necessarily lead to a better outcome for Earn users. The purpose of the mediation is to determine the contribution to be made by Digital Currency Group, Inc. The mediation period has been extended again, this time to July 5. The current plan does not contain sufficient provisions for the benefit of Earn users and Gemini remains dedicated to working with Genesis to propose an Amended Plan that Earn users can vote to support. Genesis’s solicitation and voting procedures provide a clear process for each Earn user to submit a vote on Genesis’s final amended proposed plan. Genesis has adjourned this hearing to occur one week later than its initially announced schedule to plan confirmation (see June 9th Earn update, below). The motion is set for hearing on July 20th.
On June 29, 2023, Genesis filed a motion for approval of, among other things, the adequacy of information in its Disclosure Statement and the solicitation and the voting procedures with respect to Genesis’s Amended Plan.
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