As its bankruptcy proceedings near the four-month mark, Genesis is beginning a 30-day meditation with its principal creditors.
Genesis and its principal creditors have consented to a 30-day mediation process in an effort to move forward with a final restructuring plan, although one creditor has expressed “frustration” over the pace of progress.
Gemini tweeted on April 30 that on April 28, Genesis, its parent company Digital Currency Group (DCG), its Unsecured Creditors Committee (UCC), and Gemini consented to a 30-day mediation process in court.
Gemini stated that its objective is to “quickly reach a final resolution” and that it is “supportive” of mediation.”
A proposed bankruptcy exit plan submitted in February anticipated that creditors would recover 80% of lost funds through mediation. The DCG supports the proposal, but the UCC opposed the reorganization agreement, seeking improved terms.
On May 4, Genesis is scheduled to next appear in bankruptcy court. Genesis attorney Sean O’Neal stated in court on April 30 that the company expects to have two mediation sessions before May 8, with the final provisions of the agreement made public following the mediation period.
Genesis and the UCC will have to choose a mediator. O’Neal stated that potential mediators have been contacted and that the process will be outlined to the court once a mediator has been chosen. When Genesis filed its motion for mediation on April 25, DCG expressed its thoughts on the matter.
