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Genesis employs a professional in bankruptcy avoidance

WikiBit 2022-11-25 01:22

Abstract:According to recent reports, Genesis Global Capital has retained a restructuring attorney to investigate all possible consequences, among them but not restricted to the potential for declaring bankruptcy.

  The corporation has hired investment banking firm Moelis & Company to look into possible actions, according to a report that was posted by the New York Times on November 22. People with knowledge of the situation, though, have highlighted that no monetary choices are made and also that the firm still has a chance to avoid declaring bankruptcy.

  It's significant to observe that Voyager Digital also employed Moelis & Company after severely curtailing cash withdrawals on July 1 to look into “alternatives in terms of strategy.” Voyager Digital declared bankruptcy with the Southern District of New York a few days later. This was a component of a strategy to reorganize the business so that customers would receive their cash back.

  

  However, a Genesis representative recently asserted that the business has no “impending” plans to declare bankruptcy, despite Bloomberg's report dated November 21 suggesting the contrary.

  The spokesman said, “Genesis continues a constructive and fruitful dialogue with its creditors. According to reports, Genesis is attempting to raise between $500 million and $1 billion from investors to close a funding gap brought on by ”extraordinary market turbulence and the collapse of the crypto trading FTX.

  

  On its balance sheet, the cash strapped lending institution has existing debts worth $2.8 billion, based on a story that was released by Bloomberg on November 22. The corporation has lent to “associated parties,” which would include both its holding company, Digital Currency Group, and its subsidiary and loan unit, Genesis Global Trading, for almost 30% of its total lending.

  Digital Currency Group's CEO, Barry Silbert, asserts in a recently circulated letter that the business owes Genesis Global Capital $575 million, with final payment in May 2023.

  Since the closure of FTX's exchange on November 11, Genesis, Grayscale Ventures, and its parent company, Digital Currency Group, have been the center of attention. The spread has caused others to worry that all these businesses may fail as the next exchanges.

  All three businesses have worked to assuage investors' worries during the past week.

  In response to Genesis Global Trading's withdrawal halt, Grayscale Investments tweeted on November 17 that “the safety and security of the holdings underlying Grayscale digital asset products remain unchanged” and stated that the consumer operations are still operating smoothly.

  Meanwhile, Digital Currency Group CEO Barry Silbert's most recent letter to investors allayed investors' concerns by stating that the business is on target to generate $800 million in revenue in 2022.

  

  As a reminder, WikiBit is ready to help you search the qualifications and reputation of projects in a bid to protect you from hidden dangers in this risky industry!

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