As the digital financial landscape navigates through both success stories and cautionary tales, the ongoing mediation of bankrupt crypto lender Genesis Global Holdco LLC has garnered attention.
The latest development in the crypto lender’s bankruptcy saga emerged on Wednesday when a company attorney revealed they were approaching the end of their ongoing mediation.
To clarify, ‘Mediation’ is a dispute resolution process where a neutral third party, called a mediator, helps the disputing parties to reach a mutually acceptable solution or agreement. It is commonly used in various types of disputes, including business, legal, family, and others.
A Race Against Time: August 16 Mediation Deadline Looms
The bankrupt crypto lender’s mediation journey has been an exhaustive process, extending over several months. Involving a number of core stakeholders, including parent company Digital Currency Group (DCG) and Gemini Trust Co., Genesis Global is now entering the final phase of mediation, with an impending deadline slated for August 16, according to company lawyer, Sean O’Neal.
Related Reading: Genesis Chapter 11 Bankruptcy Set To Be Resolved Soon, DCG Says
The next two weeks will be crucial for Genesis Global as the company works toward a consensus on a deal in principle. If no significant progress is made during this period, O’Neal noted that Genesis Global will not be seeking any further extension of the mediation.
So far, the stakes are high. If the parties involved fail to reach a satisfactory deal by the slated deadline, the bankrupt crypto lender will proceed with its existing bankruptcy plan, with certain amendments. This looming deadline puts into perspective the urgency and complexity surrounding the mediation.
Genesis Global’s Journey In Bankruptcy: Next Steps
From its inception in May, the mediation has been centered around a proposed bankruptcy exit plan backed by DCG. The plan was, however, rejected by Genesis Global’s official committee of unsecured creditors. The ongoing mediation thus represents one of the final obstacles in the bankrupt crypto lender’s journey through bankruptcy.
O’Neal stressed the necessity of moving forward and expressed hope that the parties are close to a deal. However, his optimism was tempered by the acknowledgment that similar hopes had been previously expressed, yet a deal remains elusive.
Meanwhile, in a report published late last month, Digital Currency Group (DCG), which owns CoinDesk and is the parent company of Genesis Global Holdco and its subsidiaries GGC and Genesis Asia Pacific Pte. Ltd., revealed that Genesis chapter 11 bankruptcy may be resolved soon.
Particularly, in a letter to shareholders, DCG noted:
After months of tireless negotiations led by DCG leadership, we are close to reaching an agreement in principle to resolve the claims in the Genesis Capital Chapter 11 cases.
Featured image from iStock, Chart from TradingView
