Creditors of Genesis Global Capital (GGC) are negotiating a prepackaged bankruptcy plan with the firm, according to sources familiar with the talks. According to one of the sources, creditors such as the Winklevoss twins' Gemini would agree to a forbearance period, in most of the payments, of between one and two years under the prepackaged bankruptcy plan.
Genesis Global Capital is laying the groundwork for a bankruptcy filing as soon as this week https://t.co/Lb5Tg24NyO via @crypto
— AmBelvedere (@AndreaBelvede10) January 19, 2023In exchange, creditors will receive cash payments and equity in Genesis parent company, Digital Currency Group (DCG). Gemini formed an ad hoc committee late last year to coordinate efforts with other creditors and advocate together for a resolution after Genesis halted withdrawals on its platform. The creditor committee has been privately negotiating for the past few weeks with Genesis in an effort to finalize a Chapter 11 bankruptcy protection plan ahead of filing.
