Attorneys for crypto exchange Gemini argued that a proposed resolution for Genesis’ bankruptcy doesn’t have enough detail or provide any assurances for some of its largest debtors in a new filing Wednesday, according to a recent filing. The Fair Deal Group, a set of ad hoc creditors, also filed an objection to the proposed plan, citing that the agreement would fail to secure all of the debts Genesis is owed and that Genesis has not demonstrated it would be able to confirm a viable plan.
Gemini’s filing stated that the proposed deal is woefully light in economic consideration and that the limited information provided by the Debtors makes this clear. Genesis, which shares a parent company with CoinDesk in DCG, filed for bankruptcy in January. In its Aug. 29 filing, attorneys for the bankrupt lender said unsecured creditors could receive up to 90% of the U.S. dollar equivalent of their holdings, though full details were not shared.
The Ad Hoc Group of Genesis Lenders also argued that Digital Currency Group’s role is wholly insufficient to satisfy even the uncontested loan amounts due. All three parties called for an end to a special exclusivity period which allowed Genesis to negotiate terms for resolving its bankruptcy through mediations. Gemini’s filing further stated that Debtors have repeatedly promised that a plan that resolves claims against DCG is right around the corner, as they seek extension after extension of mediation periods, hearing dates, and bid deadlines.