Genesis Capital Files for Chapter 11 Bankruptcy, DCG Denies Involvement
• DCG’s parent company, Digital Currency Group, denied involvement in Genesis‘ bankruptcy filing.
• A special committee of independent directors recommended and decided to file for Chapter 11 bankruptcy protection.
• Filing for Chapter 11 will allow Genesis to seek the reorganization of debts, assets and other business activities.
Digital Currency Group (DCG) has released a statement regarding its parent company’s involvement in the bankruptcy filing of Genesis Capital. The statement claimed that a special committee of independent directors recommended and decided to file for Chapter 11 bankruptcy protection, allowing Genesis to seek the reorganization of its debts, assets, and other business activities. According to DCG, neither DCG nor any of its employees, including those who sit on the Genesis board of directors, were involved in the decision to file for bankruptcy.
The company estimated liabilities of $1 billion to $10 billion, along with assets in the same range. DCG noted in the statement: „Genesis has its own independent management team, legal counsel, and financial advisors, and appointed a special committee of independent directors, who are in charge of the Genesis Capital restructuring, and who recommended and decided that Genesis Capital file chapter 11.“ By filing for Chapter 11, Genesis will be able to have its debts, assets, and other business activities reorganized in order to become more financially stable and secure.
The filing for Chapter 11 will only affect Genesis‘ lending entities, namely Genesis Global Holdco, Genesis Global Capital and Genesis Asia Pacific, which are collectively known as Genesis Capital. However, Genesis Global Trading and Genesis‘ spot and derivatives trading entity will remain operational.
DCG concluded their statement by expressing their confidence in the restructuring process and their commitment to helping Genesis through it. They also acknowledged the hard work of the independent directors and other members of the Genesis team who have been working diligently on the restructuring process. The company hopes that the filing for Chapter 11 will help them become more financially secure and stable in the long run.