• Genesis Global Capital has filed for Chapter 11 bankruptcy due to exposure to FTX.
• Lawyers from Cleary Gottleib are representing Genesis in the bankruptcy case and hope to settle with creditors by the end of the week.
• They are working with representatives of the creditors and the US Trustee Office to reach a consensus.
Genesis Global Capital has recently filed for Chapter 11 bankruptcy in the wake of the prolonged bear market in the crypto industry. The filing included two of the lender’s subsidiaries, Genesis Asia Pacific and Genesis Global Capital. The crypto lender had exposure to FTX before the exchange’s bankruptcy, leading to the halt of withdrawals on November 18th last year.
In response to the bankruptcy filing, lawyers from the Cleary Gottleib law firm, who are representing Genesis in the bankruptcy case, have informed the bankruptcy court judge that they are working “around the clock” to settle with creditors. Attorney Sean O’Neal noted that the company has come up with a timeline and an approach to assist with the bankruptcy case. The team aims for a swift resolution and does not want to prolong the process by engaging in litigation that could reduce the value available to the creditors.
In addition, the lawyers are in constant contact with the representatives of the creditors and the US Trustee Office to find a consensus. Attorney Jane VanLare further stated that the firm is exploring a potential sale to raise funds for creditors.
As the lawyers continue to work diligently to find a resolution, the success of their efforts remains to be seen. It is yet unclear how the outcome of the bankruptcy case will affect the creditors and the company itself. However, it is evident that the lawyers are doing their best to ensure a swift resolution.