Genesis Global Holdco, an institutional brokerage firm Filed for Chapter 11 bankruptcy protection Thursday night in New York Federal District Court.
Since the collapse and bankruptcy of FTX in November, Genesis has struggled to find new capital or reach an agreement with its creditors. The exchange was forced to suspend redemptions as a result of the FTX explosion, with Digital Currency Group (DCG) coming under increasing pressure over $900 million in locked deposits.
Genesis Global Holdco, LLC (“GGH”) and its two lending subsidiaries, Genesis Global Capital, LLC (“GGC”) and Genesis Asia Pacific Pte. The 11th of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York. Other Genesis subsidiaries involved in derivatives and spot trading and depository businesses and Genesis Global Trading are not included in the filing and continue to trade for clients.
All aspects of the restructuring process are overseen by an independent special committee of the Board of Directors.
While we have made great progress in improving our business plan, to address the liquidity issues arising from the extraordinary challenges recently in our industry. This includes the default of Three Arrows Capital and the bankruptcy of FTX, where a court restructuring is the most effective. to preserve assets and create the best outcomes for all Genesis stakeholders,” said Derar Islim, interim CEO of Genesis. “We deeply appreciate the patience and continued cooperation of our customers. as we work towards an equal solution.”
Derar Islim was appointed to the position in August 2022 to strengthen the company’s governance and position it for the future.
Genesis Independent Director Paul Aronzon said, “We have established a process and roadmap through which we believe we can reach the best solution for our customers and other stakeholders,” said Genesis Independent Director Paul Aronzon. Negotiate with DCG and our creditor advisors. While we will endeavor to find ways to maximize value and provide the best opportunities for our business in good standing in the future.”
Genesis has more than $150 million in cash on hand, which will provide sufficient liquidity to support continued business operations and facilitate the restructuring process.
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