Genesis granted plan extension; judge says FTX can’t take part in mediation

On Jun 5, 2023

A judge in Genesis’ bankruptcy case has extended the date by which the company must file a recovery plan, according to a June 5 filing.

Genesis receives a plan extension

Genesis is currently in bankruptcy proceedings. On May 19, the company requested a 100-day extension to the deadline for filing its recovery plan.

Now, U.S. Bankruptcy Judge Sean Lane has granted that request. The relevant June 5 court filing indicates that Genesis now has through August 2, 2023 to file its plan. The company originally intended to extend the period until August 27.

The extended deadine is dependent on the company’s continued cooperation with its Official Committee of Unsecured Creditors toward a plan. The Committee can request a motion to terminate the extended filing period with seven days’ notice if discussions break down.

Additionally, Genesis’ exclusive solicitation period has been extended to Oct. 1 (rather than Oct. 26 as originally requested). Genesis can also seek further extensions going forward.

FTX can’t join mediation talks

FTX, a creditor in Genesis’ bankruptcy, recently filed an objection to Genesis’ request for an extension. FTX also complained about its exclusion from mediation talks.

Bloomberg reported on June 5 that Judge Lane has now overruled FTX’s request. The judge said that there must be “a certain amount of radio silence” in any mediation process. He also said that reducing the length of mediation will not help the case end sooner.

Genesis’ mediation discussions are highly private. Bloomberg’s report suggests that Genesis is primarily engaged with its parent company, Digital Currency Group.

During its earlier complaint, FTX also claimed that Genesis owes it nearly $4 billion, contrary to Genesis’ $0.00 estimate. The judge will reach a decision on that matter during a future hearing, according to Bloomberg’s latest report.

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