creditors

Lawyers for Genesis and Its Creditors Are ‘Optimistic’ for a Quick Resolution to Bankruptcy Woes

Lawyers for Genesis Global told a federal bankruptcy court in New York City on Monday that they’ve been working with creditors’ representatives and the U.S. Trustee’s Office “around the clock” for the past two months in order to reach a “consensual resolution” with the embattled company’s creditors.

Genesis’ lending arm halted withdrawals on Nov. 18, 2022, after what its lawyers described as “a run on the bank” in the wake of FTX’s collapse earlier that month. Two months later, on Jan. 19, Genesis Global Holdco – the holding company of Genesis Global Capital – and two of its subsidiaries, Genesis Asia Pacific (GAP) and Genesis Global Capital (GGC), global-files-for-bankruptcy-protection/” data-ylk=”slk:filed for Chapter 11 bankruptcy protection” class=”link “filed for Chapter 11 bankruptcy protection in New York.

Genesis’ lawyers – from the New York-based law firm Cleary Gottleib – told bankruptcy court Judge Sean H. Lane at a hearing on Monday they expect to reach an agreement with the creditors by the end of the week.

“We have a timeline and an approach to get through this case as quickly as possible,” Genesis attorney Sean O’Neal told the judge. “We really want to avoid getting involved in a prolonged

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January 25, 2023 by ATTORNEY

FTX Is Allowed to Hide the Identity of Its 50 Biggest Creditors

(Bloomberg) — FTX creditors, including rich investors who don’t want their names made public, can remain anonymous and still participate in the company’s bankruptcy case for now, a judge ruled at the company’s first court hearing Tuesday. 

US Bankruptcy Judge John Dorsey agreed to let the fallen crypto exchange redact the names of the 50 biggest unsecured creditors owed a total of $3.1 billion. The US Bankruptcy Code normally requires the names be filed in documents available to the public. Representatives for FTX argued those creditors are also customers and disclosure would allow rivals to steal their business. 

The sudden fall of Sam Bankman-Fried’s crypto empire into bankruptcy Nov. 11 was so fast, and so disorganized that many standard procedures, including Tuesday’s hearing, have been subject to delays. The hearing began with FTX attorney James Bromley saying a “substantial amount” of the group’s assets “have either been stolen or are missing.” 

At least two groups of crypto creditors sent lawyers to the hearing to support the company’s request to keep their identities secret. One included members that are among FTX’s largest unsecured creditors — likely setting the stage for future fights for assets among various groups.

Dorsey agreed to

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November 24, 2022 by ATTORNEY

Chemical maker TPC Group reaches $30 million bankruptcy settlement

(Reuters) – Bankrupt Texas petrochemical producer TPC Group on Thursday announced a $30 million settlement with junior creditors, including people with injury and property damage claims related to a 2019 fire explosion and fire at a Port Neches, Texas, refinery.

The Houston-based firm filed a prepackaged Chapter 11 case in June after reaching an agreement with bondholders to eliminate $950 million of $1.3 billion in secured debt and shed liabilities from an explosion and fire at its plant in Port Neches, Texas. A bankruptcy plan based on that agreement would have left just $5 million for junior creditors and litigation claimants.

Thursday’s settlement increases junior creditors‘ recovery to $30 million and ensures that a higher percentage of those funds will go to litigation claimants. Bondholders, who will not be fully repaid in TPC’s restructuring, agreed not to collect any money from the $30 million fund.

TPC’s attorneys said during a court hearing in Wilmington, Delaware, that the company will amend its Chapter 11 plan to reflect the settlement and reach out to creditors eligible

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October 31, 2022 by ATTORNEY
April 2024
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