Genesis calls in shuffling experts in its fight to avoid bankruptcy | The Financial Express

Genesis calls in shuffling experts in its fight to avoid bankruptcy

Days later, as part of a reorganisation strategy that would eventually “return value to customers.

Genesis calls in shuffling experts in its fight to avoid bankruptcy
According to a recently leaked letter from Digital Currency Group CEO Barry Silbert, the company owes Genesis Global Capital $575 million, which is due in May 2023.

A restructuring adviser has reportedly been hired by cryptocurrency lending company Genesis Global Capital to examine all options, including but not restricted to a potential bankruptcy, as reported by Cointelegraph.

According to a Nov. 22 New York Times report, it is believed that the company has hired investment bank Moelis & Company to investigate options, though people familiar with the situation have emphasised that no financial decisions have been made and that it is still possible for the company to avoid filing for bankruptcy, Cointelegraph further noted.

Days later, as part of a reorganisation strategy that would eventually “return value to customers,” Voyager Digital filed for Chapter 11 bankruptcy in the Southern District Court of New York.

Cointelegraph further noted that the troubled lending company, according to a Nov. 22 Bloomberg report, has $2.8 billion in unpaid loans on its balance sheet, with about 30% of those loans going to “related parties” like its parent company Digital Currency Group and its affiliate and lending unit, Genesis Global Trading.

According to a recently leaked letter from Digital Currency Group CEO Barry Silbert, the company owes Genesis Global Capital $575 million, which is due in May 2023, Cointelegraph further noted.

(With insights from Cointelegraph)

Also Read: Bitcoin-based Core Scientific unlikely to continue operations due to financial instability

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First published on: 23-11-2022 at 12:14 IST