“Genesis Cryptocurrency Company Seeks Mediation for Debt Restructuring Plan”

According to reports, all parties involved in the bankruptcy of cryptocurrency company Genesis have agreed to a 30 day mediation period. The agreement was submitted earlier this week by Genesis Global to the US bankruptcy court, requesting the appointment of a mediator to assist Genesis owner DCG in reviewing the terms and conditions of the debtor restructuring plan.

The parties involved in Genesis bankruptcy agree to a 30 day mediation period

Introduction

On August 24, 2021, reports surfaced that the cryptocurrency company Genesis Global had submitted an agreement to the US bankruptcy court. This agreement requested the appointment of a mediator to assist Genesis owner DCG in reviewing the terms and conditions of the debtor restructuring plan. With all parties agreeing to a 30-day mediation period, this decision could help move the company towards a resolution of its bankruptcy.

The Genesis Cryptocurrency Company Bankruptcy

Genesis Global was founded in 2013 and quickly rose to prominence as a cryptocurrency trading and lending platform. However, in March 2021, the company announced its bankruptcy due to the halt of its financial services. This left many crypto investors in limbo and resulted in bankruptcy procedures for the company.

The 30-Day Mediation Period

According to the agreement submitted by Genesis Global, all parties involved in the bankruptcy proceedings have agreed to enter a 30-day mediation period. This decision is a positive step towards finding a resolution. Using a mediator can help to avoid lengthy legal battles and reach an agreement that is mutually acceptable.
In the mediation process, a neutral third party will be appointed to help the parties involved in the bankruptcy negotiations and guide them towards a mutually acceptable resolution. This mediator will help to facilitate communication between the parties and work towards a settlement that is in everyone’s best interest.

The Role of Debt Restructuring

Through the mediation process, Genesis Global’s owner DCG will review the terms and conditions of the debtor restructuring plan. Debt restructuring involves renegotiating debt payments to make them manageable in the long term while avoiding bankruptcy.
This review will help to identify potential gaps or issues within the debtor restructuring plan, which will then be thoroughly discussed during the mediation process. This way, all parties involved can work together to make necessary adjustments and agree on a new plan that could save the company from bankruptcy or liquidation.

Benefits of Mediation

There are several benefits of mediation that make it a preferred method of conflict resolution:
– The process is voluntary, and all parties are encouraged to take an active role in it.
– With a mediator present, parties can communicate their grievances more openly and respectfully.
– The mediator’s neutrality helps to maintain a fair environment that is balanced for all parties involved.
– Mediation can be less expensive and less stressful than taking a dispute to court, providing a more efficient resolution process.

Conclusion

The decision to enter mediation shows that all parties involved in the bankruptcy proceedings of Genesis Global are committed to finding a mutually agreed-upon solution. Now that a mediator will assist DCG in reviewing the debtor restructuring plan’s terms and conditions, we can expect more explicit negotiations and discussions in the coming days.

FAQs

1. What exactly is debt restructuring?
Debt restructuring is renegotiating debt payments to make them manageable in the long term while avoiding bankruptcy.
2. What are the benefits of mediation?
Some of the benefits of mediation include its voluntary nature, more open and respectful communication, the presence of a neutral third party, and its cost and timeliness compared to court litigation.
3. What happens if parties cannot agree during mediation?
If parties cannot reach a mutually acceptable agreement during mediation, they may still opt to pursue legal action or move into other forms of dispute resolution, such as arbitration.