Genesis Completes Restructuring and Commences Distributions to Creditors
August 02 2024 - 12:24PM
Business Wire
Genesis Global Holdco, LLC (“GGH”), Genesis Global Capital, LLC
(“GGC”) and Genesis Asia Pacific Pte. Ltd. (“GAP”, together with
GGH and GGC, “Genesis” or the “Company”) today announced the
completion of its restructuring on August 2, 2024 (the “Effective
Date”).
Genesis has commenced making approximately $4 billion in
distributions of digital assets and US dollars to creditors
pursuant to the chapter 11 plan (the “Plan”). Unlike many
bankruptcy cases, the Plan does not seek to cap recoveries at
petition date value. As part of the initial distribution, creditors
will receive on average 64% recoveries on an in-kind, coin by coin,
basis as described below:
- On the Effective Date, BTC creditors will receive 51.28%
recoveries as valued on an in-kind basis in the form of BTC, and
ETH creditors will receive 65.87% recoveries as valued on an
in-kind basis in the form of ETH.
- As soon as practicable after the Effective Date, altcoin
creditors (other than Solana) will receive on average 87.65%
recoveries as valued on an in-kind basis, and Solana creditors will
receive 29.58% recoveries as valued on an in-kind basis.
- On the Effective Date, US dollar and stablecoin creditors will
receive 100% recoveries on an in-kind basis in the form of US
dollars.
- Creditors will be entitled to additional recoveries following
the initial distribution, depending on the results of ongoing
claims reconciliation, contractual rights against third parties,
and litigation.
Creditors have been contacted with instructions on how to
receive distributions in digital assets and US dollars. For
questions with respect to distributions, creditors can contact
Distributions@genesisholdco.com.
As part of the Plan, creditors have established a $70 million
litigation fund to pursue causes of action against various third
parties, including Digital Currency Group, which is Genesis’
corporate parent. The $70 million litigation fund will consist of
$26 million in BTC, $13 million in ETH, and $31 million in USD.
Counsel to the Litigation Oversight Committee has not been selected
but will be shortly.
Mark Renzi, a Managing Director at BRG, has been appointed as
the plan administrator to oversee the administration of the Plan
and the Company’s wind-down process. Pursuant to the Plan, a new
board of GGH has been appointed, along with the Wind-Down Oversight
Committee and the Litigation Oversight Committee.
For more information on Genesis’ restructuring, including access
to court documents, please visit
https://restructuring.ra.kroll.com/genesis.
Cleary Gottlieb Steen & Hamilton LLP is legal counsel to the
Company and the Wind-Down Oversight Committee. Alvarez & Marsal
served as financial advisor and Moelis & Company acted as
investment banker.
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FGS Global for Genesis press@genesistrading.com