• Genesis, a bankrupt crypto lender, has filed a motion to extend the exclusivity period for its reorganization plan by 100 days.
• The request is mostly due to the size and complexity of its case, with billions of dollars in assets and liabilities that need restructuring.
• It also needs extra time to account for an evolving regulatory environment in the digital asset sector.
Genesis Seeks Extension for Reorganization Plan
Genesis, a bankrupt crypto lender, has filed a motion to extend the exclusivity period for its reorganization plan by 100 days. In a May 19 court filing to the United States Bankruptcy Court for the Southern District of New York, the lender said it needed the extension “to achieve a value-maximizing restructuring without interruption from competing plans.”
Size & Complexity of Case
The size and complexity of Genesis‘ case was enough ground for them to seek an extension. According to their balance sheets, there are billions of dollars in assets and liabilities that need restructuring. Furthermore, their operations in the digital asset industry mean they are faced with an evolving regulatory regime that must be taken into consideration throughout this process.
Good Faith Progress
The organization argued that their request should be granted because they had made “good faith progress” towards exiting bankruptcy. This included working on a potential restructuring agreement without participation from DCG (Digital Currency Group).
Value Maximizing Restructuring
Genesis seeks to optimize value through this restructuring effort and stated that they were ready to work with other parties such as creditors or investors seeking investments or purchases within this context. Additionally, they asked for more time so that no other entities could interfere with their efforts while they negotiate terms over an extended period of time.
Overall, Genesis is asking for more time so that they can have an uninterrupted chance at achieving what would be deemed as successful restructuring efforts – maximized value while taking into account applicable regulations regarding digital assets within their sector.