Genesis takes every route to avoid bankruptcy: Will work with a restructuring expert



Genesis takes every route to avoid bankruptcy: Will work with a restructuring expert

Cryptocurrency loan firm Genesis Global Capital has hired a restructuring consultant to explore all possible options, including its potential bankruptcy.

The company hired investment bank Moelis & Company to explore options to get out of the situation, according to a New York Times statement on November 22. Those who closely follow the situation emphasized that no financial decision has been made and that it is still possible for the company to avoid filing for bankruptcy.

Interestingly, Moelis & Company was one of the companies Voyager Digital hired to explore strategic alternatives after suspending withdrawals and deposits on July 1.

After Voyager Digital acquired Moelis & Company, the company filed for bankruptcy under Article 11 in the Southern District Court of New York as part of a restructuring plan to restore assets to customers.

However, a Genesis spokesperson told Cointelegraph that the company has no plans to file for bankruptcy.

“We have no plans to file for bankruptcy. Our aim is to resolve the current situation with reconciliation without the need for any bankruptcy filing. Genesis continues to engage in constructive talks with creditors.”

As a result, it appears that Genesis is seeking funding between $500 million and $1 billion from investors to fill a gap caused by the unprecedented turmoil in the market and the collapse of crypto exchange FTX.

According to a Bloomberg report on November 22, the troubled crypto loan company has $2.8 billion in outstanding loans on its balance sheet.

In a letter recently shared by Digital Currency Group CEO Barry Silbert, it is stated that he owes $575 million to Genesis Global Capital. The maturity of this debt will expire in May 2023.

You may be interested: Crypto loan firm Genesis denies bankruptcy claims!

Ever since the FTX stock market crashed on November 11, all eyes have turned to Genesis, Grayscale Investments and their parent company, Digital Currency Group, with concerns that they may be the next victims of the outbreak.

All three companies tried to quell investor fears last week.

Grayscale Investments stated in a Twitter post on November 17 that Genesis Global Trading’s products continue to operate normally. Grayscale also said that the security of the underlying assets of Grayscale digital asset products is not affected, referring to Genesis Global Trading’s suspension of withdrawals.

Genesis reiterated that despite the suspension of customer withdrawals in lending, spot and derivatives trading and custody remains fully active.

On the other hand, in a letter sent to customers by Digital Currency Group CEO Barry Silbert, he assured his investors that DCG will have generated $800 million in revenue by 2022.

“We had overcome previous crypto winters,” Silbert said. “Although the current crypto winter is tougher, we will come out of this stronger.”



Soruce : https://tr.cointelegraph.com/news/genesis-calls-in-restructuring-expert-in-its-fight-to-avoid-bankruptcy

Leave a comment

SMM Panel PDF Kitap indir