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Genesis provided the plan extension; Judge Says FTX Can’t Participate in Arbitration

According to a June 5 filing, a judge in Genesis’ bankruptcy case has extended the date by which the company must file a recovery plan.

Origin receives a plan extension

Genesis is currently in bankruptcy proceedings. On 19 May, the company requested a 100-day extension in the deadline for filing its recovery plan.

Now, US Bankruptcy Judge Sean Lane has granted that request. Relevant June 5 Court filings indicate that Genesis now has until August 2, 2023, to file its plan. The company originally intended to extend the period till August 27.

The extended deadline is dependent on the company’s continued cooperation with its official committee of unsecured creditors towards a plan. If discussion breaks down, the committee may request a motion to end the extended filing period with seven days’ notice.

Additionally, the exclusive solicitation period for Genesis has been extended to October 1 (instead of October 26 as originally requested). Genesis may also look for further expansion going forward.

FTX cannot participate in arbitration talks

FTX, a creditor in Genesis’ bankruptcy, recently filed an objection to Genesis’ request for an extension. FTX also complained about its exclusion from arbitration talks.

Bloomberg reported June 5 Judge Lane has now denied FTX’s request. The judge said there must be “a certain amount of radio silence” in any arbitration process. He also said that reducing the duration of mediation will not help in speedy disposal of the matter.

The discussion of the mediation of Genesis is highly private. The Bloomberg report states that Genesis is primarily associated with its parent company, Digital Currency Group.

During its earlier complaint, FTX also claimed that Genesis owed approximately $4 billion, as opposed to Genesis’ estimate of $0.00. According to the latest Bloomberg report, the judge will reach a decision on that matter during a future hearing.

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