• Genesis Global Trading, along with creditors and other parties, agree to a 30-day mediation period.
• The process can start once a mediator is appointed and the court submits an order.
• Digital Currency Group (owner of CoinDesk) is looking to sell Genesis’ crypto lending and trading platform.
Genesis Bankruptcy Parties Agree to Mediation
The parties in the bankruptcy case of Genesis Global Trading have agreed to a 30-day mediation period pending the appointment of a mediator. The process will begin once the mediator is appointed and an order has been submitted to the U.S. bankruptcy court by all parties involved in the case.
Digital Currency Group Plans to Sell Platform
Digital Currency Group (DCG), owner of CoinDesk, has announced plans to sell off Genesis’ crypto lending and trading platform following FTX’s collapse last November which led to withdrawals being halted by Genesis’ lending arm. The firm filed for bankruptcy protection in January, leading DCG to look into selling off their platform.
Background Information
Prior to agreeing on mediation, a subset of creditors had decided not to participate in an earlier agreement made by the company regarding its reorganization plan which included contributions from DCG. In response, Genesis requested assistance from a mediator for help with setting up terms for DCG’s contribution towards its plan.
Mediation Process
The mediation process will involve resolving disputes between debtors and creditors through discussions facilitated by a neutral third party, who will be selected at a later date after all parties have agreed on one mediator for this purpose. The goal of mediation is for all parties involved in the case reach an agreement without needing to proceed with legal action against one another or having matters settled through court orders or decisions made by judges or juries during trial proceedings.
Conclusion
By agreeing on this 30-day mediation period both debtors and creditors are taking steps towards finding resolution without having their issues determined through litigation proceedings within courtrooms that could take longer periods of time than necessary while also involving more costly costs associated with it as well.