Genesis and 3AC: A Match Made in Bankruptcy Heaven?
In a dramatic turn of events fit for a crypto soap opera, bankrupt lender Genesis is looking to tie up some loose ends with the imploded Three Arrows Capital (3AC). Filed on November 9, Genesis’ motion for court approval aims to settle its financial woes by offering 3AC a juicy $33 million general unsecured claim. Yes, you heard that right – a mere 3.3% slice of the whopping $1 billion in claims hanging over their heads.
The Numbers Game: Breaking it Down
According to the proposed settlement agreement, the $33 million is like giving a two-dollar tip when you owe your buddy a hundred bucks. While it may seem like a bargain, Genesis argues that compensating the 3AC debtor is essential for moving forward from its Chapter 11 bankruptcy proceedings.
- Claim Amount: $33 million
- Original Claims: $1 billion
- Claim Percentage: 3.3%
What’s Up with AVAX and NEAR?
But wait, there’s more! Genesis also wants to kiss goodbye to its claims over AVAX and NEAR tokens, handing them over to the 3AC debtor. In a world where crypto tokens flutter around like confetti at a parade, this seems like an odd trade-off. But, as Genesis puts it, this settlement is all in the name of alleviating any claim-related back pain!
The Grand Bankruptcy Strategy
Genesis insists that this settlement isn’t just some financial Band-Aid. They view it as key to smoothing the rocky road toward their Chapter 11 reorganization. The settlement aims to alleviate booking expenses and the chaos of litigating over claims – hello, legal fees!
“The proposed settlement will… eliminate the risks, expenses, and uncertainty associated with protracted litigation.”
Timeline and Court Shenanigans
The settlement proposal is currently in the hands of Judge Sean Lane at the United States Bankruptcy Court for the Southern District of New York. Creditors have until November 24 to voice any objections, followed by a court hearing on November 30. It’s no Hollywood premiere, but with everything at stake, it’s bound to be an intense affair.
Looking Back: The FTX Aftermath
This motion comes just in time for the one-year anniversary of the FTX exchange’s spectacular collapse, which single-handedly sent the cryptocurrency industry on a wild rollercoaster ride into a bear market. Across the board, firms like Genesis and 3AC have felt the repercussions of FTX’s demise, with Genesis’s derivatives business left reeling from a $175 million loss trapped in the failed exchange.
In this tangled web of crypto finance, one can only hope that Genesis and 3AC find their path to recovery without any further detours into bankruptcy land.
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