Genesis believes that creditor disputes can be solved this week: report

Genesis believes that creditor disputes can be solved this week: report

Genesis, one of the latest great crypto names that went down, reported bankruptcy on January 20. In contrast to other top -class cases, however, the company's asset book does not look so bad.

actually recent reports claim that the creditors could soon receive at least part of their funds.

restructuring plan already on the table

A lawyer of Genesis indicated that he believes that disputes with creditors can be enclosed within a week and that bankruptcy proceedings could be worked out by the end of May 2023.

Sean O’Neal, one of the lawyers of Genesis, said during a preliminary hearing before the court in Manhattan that he was “careful” with regard to discussions with creditors and hope that an agreement with the creditors could be reached within a week. This in turn would enable the court to concentrate on the determination of the conditions for genesis so that genesis can formulate and end the bankruptcy proceedings, as reported by Reuters.

"If I sit here now, I don't think we will need a mediator. I am very optimistic."

Brian Rosen, a lawyer on the other side of the fence, which represents unnamed creditors with claims of over $ 1.5 billion against Genesis, was rather careful than optimistic. However, Rosen admitted that negotiations would already be conducted between them and that the two parties would get closer to an agreement.

assets and liabilities enough to cover debts

In contrast to FTX and other companies that went down with more debts than assets, it seems that genesis - despite market problems - could soon be enough solvent if things work.

Unfortunately, there are about $ 1.7 billion of these assets and liabilities from claims against the parent company of Genesis, the Digital Currency Group.

Coincidentally, the next due date of the loan of Genesis to his parent company DCG in May 2023, says Barry Silbert, CEO from DCG, which also commented on an amount that looks very similar to the total amount required by Genesis against DCG. May 2023, as mentioned above, is the month in which the lawyers of Genesis estimate that they can end their bankruptcy proceedings.

"DCG has not borrowed $ 1.675 billion of Genesis. DCG has never missed an interest payment on Genesis and is currently in the case of all outstanding loans; the next loan is May 2023."

It is still too early to be sure whether genesis will really achieve the quick resolution that you have in mind. However, if your asset books are an indication of this, the company could be the first former crypto giant to solve its problems and return in a functional form.