Furthering ongoing stakeholder discussions, we will begin a voluntary Chapter 11 restructuring of our lending business to optimize results for our Genesis clients and Gemini Earn users.
Chapter 11 outlining the plan
Restructuring process led by an independent special committee of the Board of Directors
Genesis’ derivative and physical trading, broker-dealer and custody businesses are not part of Chapter 11. Continue customer transaction operations
Extensive liquidity of over $150 million to support operations and expedite the restructuring process
New York, January 20, 2023–(BUSINESS WIRE)–Genesis Global Holdco (“Genesis” “GGH” or the “Company”), an industry pioneer and digital currency prime broker, today announced that everyone deserves announced strategic actions to achieve a global resolution to maximize its customers and stakeholders and strengthen the business for the future.
As previously announced, Genesys and its advisors will work with creditors and corporate parent company Digital Currency Group (“DCG”) to assess the most effective ways to protect assets and move their businesses forward. ”) had ongoing and productive discussions with their advisors. Genesis has now initiated a restructuring process under court supervision to further these discussions and arrive at a comprehensive solution for its lending business. If this is achieved, it will bring optimal results for Genesis clients and Gemini Hearn users.
Genesis Global Holdco, LLC (“GGH”) and two of its lending operating subsidiaries, Genesis Global Capital, LLC (“GGC”) and Genesis Asia Pacific Pte. We have filed a voluntary petition in the United States Bankruptcy Court for the Southern District of New York (the “Court”) pursuant to Chapter. Genesis Global Trading and other Genesis subsidiaries involved in derivatives, physical trading and custody businesses will not be included in the filing and will continue their client trading operations.
As part of the Chapter 11 filing, Genesis will distribute assets to its creditors with a proposed roadmap to its exit, including the Chapter 11 Plan (the “Plan”). The plan contemplates a dual-track process to pursue a sale, capital raise and/or equity transaction, which will allow the business to emerge under new ownership. The company will initiate a marketing and sales process to monetize GGH’s assets or otherwise raise capital and will use the proceeds of the transaction to pay its creditors fairly and equitably. If the marketing process does not result in a sale or capital increase, the creditors will receive ownership of the Restructured GGH.
All aspects of the restructuring process will be overseen by an independent special committee of the company’s board of directors.
“Although we have made significant progress in improving our business plan to resolve liquidity issues caused by recent extraordinary challenges in the industry, including the default of Three Arrows Capital and the bankruptcy of FTX, , a court restructuring is the most effective way to protect assets and create the best possible outcome for all of Genesys’ stakeholders,” said Genesys’ interim CEO. A Deller Islam said: “We are working towards an equitable solution and are deeply grateful to our clients for their continued patience and partnership.”
Delar Islim was appointed to his role in August 2022 as part of a series of leadership announcements to further strengthen the company’s governance and position it for the future.
Genesis Independent Director Paul Aronzon said: “As we seek to maximize value and execute on a path that provides the best opportunity for our business to be well positioned for the future, we are engaging in dialogue with DCG and our creditor advisors. I look forward to moving forward.”
Genesis has more than $150 million in cash on hand, which will provide sufficient liquidity to support ongoing business operations and facilitate the restructuring process. The company has filed a number of customary “first day” motions with the court to allow daily operations to continue on its normal course. Court approval of these requests is expected in the coming days. Redemptions and new loan originations in lending operations will continue to be suspended and claims will be addressed through the Chapter 11 process. Genesys and its advisors will continue to evaluate options to move the process towards a global resolution.
Additional information regarding Chapter 11 filings, including access to court documents, is available at https://restructuring.ra.kroll.com/genesis.
Moelis & Company is acting as financial advisor to the company. Cleary Gottlieb Steen & Hamilton LLP is acting as legal advisor. Alvarez & Marsal are acting as restructuring advisors.
Genesis is a full-service digital currency prime brokerage that provides a single point of access to select, eligible individuals and global institutional investors. Combining unparalleled operational excellence, seamless user experience and best-in-class client service, Genesys delivers the suite of services global investors need to manage their digital asset portfolios To do.
The company offers sophisticated market participants a fully integrated platform for trading, borrowing, lending and custody of digital assets, creating new yield opportunities while increasing counterparty capital efficiency. .
For more information about Genesis, please visit genesistrading.com.
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