On January 19, Genesis announced strategic actions to achieve a global resolution to maximize value for all clients and stakeholders and strengthen its business for the future.

Specifically, Genesis Global Holdco, LLC (“GGH”) and two of its lending business subsidiaries, Genesis Global Capital, LLC (“GGC”) and Genesis Asia Pacific Pte. Ltd. (“GAP”), filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in the Southern District of New York.

Importantly, Genesis’ other subsidiaries involved in the derivatives and spot trading and custody businesses and Genesis Global Trading are not included in the filing and continue client trading operations.

We took this strategic action to achieve a global resolution to maximize value for all clients and stakeholders and strengthen our business for the future.

The court-supervised process provides the most effective avenue through which to continue the ongoing, productive discussions we have been having with the advisors to both our creditors and DCG.

It also provides the best opportunity for our business to emerge well-positioned for the future.

As part of its Chapter 11 filing, Genesis has proposed a roadmap to an exit including a Chapter 11 plan (the “plan”) that calls for a framework for a global resolution of all claims through, and the creation of, a trust that will distribute assets to creditors. The plan contemplates a dual track process, through which we will pursue a transaction to sell all or a portion of our business or make our creditors owners in the business, which would enable our lending business to emerge under new ownership.

The plan also sets up a trust to distribute certain types of assets, like proceeds from avoidance actions and claims against third parties, to creditors.

At this time, redemptions and new loan originations in the lending business remain suspended, and claims will be addressed through the Chapter 11 process.

Genesis intends to establish a customary claims process for creditors, and, if you are a Genesis lending client, you will receive information from our claims and noticing agent Kroll at the appropriate time describing the claims process.

On March 21st, GGH, GGC and GAP (the “Debtors”) filed with the Bankruptcy Court a list of creditors and the amount the Debtors believe each Debtor entity owes to each of those creditors (the “Schedules”). If creditors disagree with the amounts the Debtors believe is owed to them, as set forth in the Schedules, such creditors will be able to file a proof of claim to support their claim. More information about the claims procedures and notice of the deadline for submitting proof of claim (the "Bar Date"), will be provided on the website maintained by Kroll, which is also where creditors will be able to file their proofs of claim. Proofs of claim are expected to be available around early April.