The latest restructuring updates from the Genesis team.
Genesis has taken strategic actions to achieve a global resolution to maximize value for all clients and stakeholders and strengthen its business for the future.
On January 19, Genesis Global Holdco, LLC and two of its lending business subsidiaries, Genesis Global Capital, LLC and Genesis Asia Pacific Pte. Ltd., filed voluntarily petitions under Chapter 11 of the U.S. Bankruptcy Code in the Southern District of New York. Genesis’s 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.
In connection with the restructuring, on January 23, Genesis received court approval for all of its first day motions.
On February 10, Genesis moved a step closer to a resolution by filing with the court an agreement in principle with DCG and key groups of creditors.
Genesis has engaged a claims agent, Kroll, to help answer questions from customers, employees, partners and other stakeholders. They have set up a website which includes court documents and other information about the process.
Additional information about our filing can be found below.
What did Genesis announce?
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.
What is Chapter 11?
Chapter 11 refers to the section of the U.S. Bankruptcy Code that governs court-supervised reorganizations of businesses. It is a tool commonly used by companies to refine business plans and operations in an orderly manner while allowing the company’s management to remain in control of the business to ensure that it may continue day-to-day operations in the ordinary course.
Why did Genesis file these entities for Chapter 11?
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.
How will this process achieve a global resolution?
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.
How long will the Chapter 11 process take?
Genesis’s goal is to move through the process as quickly as possible.
What does this mean for clients?
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.
How do I get in touch with Kroll, file a claim or otherwise initiate or explore 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.
Where can stakeholders find more information about the process?
Stakeholders can find more information about the process in our FAQ which is hosted on our website. Additional information regarding our Chapter 11 cases, including court documents and claim information, can be found by visiting Genesis’s claims agent Kroll, by calling (646) 440-4183 (International) / (888) 524-2017 (toll free U.S./Canada) or sending an email to [email protected].
We value the partnership we have developed with your team and plan to continue our business relationship as we move through this process.
To help answer any further questions you may have about our restructuring, we have posted information on the following website. You may also contact Genesis’s claims agent, Kroll, at (888) 524-2017 (toll free U.S. / Canada) and (646) 440-4183 (International), or by email at [email protected]. If you are a Genesis client, please continue to contact the Genesis team via your usual channels for all non-restructuring questions.
PLEASE TAKE NOTICE that neither the Debtors nor their advisors will ever contact you by email, telephone call, or otherwise requesting account information or other personal information absent an Order from the Court.
If you receive any message purporting to be from the Debtors or their advisors and requesting account information or personal information, contact the Debtors’ claims agent, Kroll, at [email protected].
To report spoofing or phishing attempts, or to report that you've been a victim, file a complaint with the FBI's Internet Crime Complaint Center (IC3) and Consumer Financial Protection Bureau (CFPB) at the Federal Trade Commission website.