Bankrupt crypto lender Genesis Global Holdco LLC asked the judge overseeing its reorganization to appoint a mediator in order to save the outline of a deal with its parent, Digital Currency Group, Bloomberg News reported. Genesis is seeking mediation to take place over a two-day period prior to May 9, and ahead of a mid-May due date on $630 million of debt owed to Genesis by DCG. “While these discussions were initially focused on resolving issues left open in the restructuring term sheet, more recent discussions have made it clear that a mediator is necessary to assist the mediation parties in reaching a resolution,” Genesis said in a bankruptcy filing. In particular, the unsecured creditor committee is opposed to the restructuring proposal as it stands now and are seeking better terms, according to two people familiar with the situation, who asked not to be named discussing private information. For its part, DCG in a tweeted statement said that “a subset of creditors have decided to walk away” from a settlement agreement that was submitted to the court. “DCG remains committed to reaching a fair outcome and while we look forward to a constructive mediation process, we will have to weigh any new demands against the concessions we’ve previously made.” “Given that DCG owes GGC approximately $630 million pursuant to certain fixed term loans due during the second week of May ... the Debtors believe that the mediation should be scheduled immediately,” the filing said.
