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Genesis Lawyers Hopeful Of Swift Resolution In Bankruptcy Process

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Genesis Global Capital has been the latest casualty of the effects of the crypto bear market. The crypto lender recently filed for Chapter 11 bankruptcy. The company’s lawyers have informed a bankruptcy court in New York of working “around the clock” to settle with creditors.

Genesis hopes for a swift resolution in bankruptcy

The lawyers noted that they have been working with the representatives of creditors and the US Trustee Office for the last two months to reach a consensus. The lending unit of Genesis halted withdrawals on November 18 last year because of exposure to FTX. Genesis had funds in FTX before the exchange’s bankruptcy.

Two months after halting withdrawals, Genesis filed for bankruptcy. The bankruptcy filing included two of the lender’s subsidiaries: Genesis Asia Pacific and Genesis Global Capital. Lawyers from the Cleary Gottleib law firm, which is representing Genesis in the bankruptcy proceedings, informed the bankruptcy court judge that they plan to settle by the end of the week.

According to attorney Sean O’Neal, Genesis had come up with a timeline and an approach to assist the lender in getting through the bankruptcy case.

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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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3M’s Aearo scores quick appeal of bankruptcy court’s ruling on earplug MDL

(Reuters) – By the end of 2023, we should have a much better idea about whether companies facing vast mass torts exposure can use the bankruptcy system to sidestep multidistrict litigation in federal court.

On Wednesday, the 7th U.S. Circuit Court of Appeals granted a petition by 3M Co subsidiary Aearo Technologies LLC to review a bankruptcy court’s decision refusing to block MDL litigation against the parent company despite Aearo’s Chapter 11 bankruptcy.

The 7th Circuit order means that Aearo will not have to first challenge the ruling by U.S. Bankruptcy Judge Jeffrey Graham of Indianapolis in federal district court, which is usually the first stop for bankruptcy appeals. Instead, Aearo can tell the 7th Circuit directly why it believes that more than 200,000 combat veterans should not be permitted to continue litigating their claims against 3M for selling allegedly defective earplugs in an MDL in Pensacola, Florida.

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The 3rd Circuit, as you probably recall, is weighing a parallel case. That court heard oral arguments last month about whether the bankruptcy of a Johnson & Johnson subsidiary can halt nearly 40,000 claims that J&J’s talc products

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Bankruptcy as MDL escape hatch? Not so fast, judge tells 3M in ‘surprise’ decision

The 3M logo is seen at its global headquarters in Maplewood, Minnesota, U.S. on March 4, 2020. Picture taken March 4, 2020. REUTERS/Nicholas Pfosi/File Photo

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(Reuters) – A federal bankruptcy judge in Indianapolis jolted 3M Co on Friday, ruling that scores of thousands of military veterans who claim hearing loss from 3M earplugs can continue to litigate their claims against 3M, despite the July 26 bankruptcy of several 3M subsidiaries. The company’s shares, as my colleague Dietrich Knauth reported, dropped 12% Friday and continued falling on Monday morning.

But the decision’s implications extend beyond 3M and the earplug multidistrict litigation. The ruling by U.S. Bankruptcy Judge Jeffrey Graham of Indianapolis should also be a warning to other MDL defendants: A subsidiary’s bankruptcy may not be the escape hatch you’re hoping for.

Graham’s ruling took even seasoned bankruptcy observers such as law professor Lindsey Simon of the University of Georgia School of Law by surprise, since courts frequently agree to extend litigation stays to the parents of bankruptcy subsidiaries. Reuters, for instance, has reported extensively on the so-called Texas two-step, in which solvent companies dump mass tort liability into a newly created

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Sandy Hook parents seek to stop InfoWars bankruptcy payments to Alex Jones

By Dietrich Knauth

(Reuters) – Parents of children killed in the 2012 Sandy Hook school massacre urged a U.S. bankruptcy judge on Wednesday not to allow the parent company of far-right website InfoWars to send any money to its founder, conspiracy theorist Alex Jones, or his companies until they have an opportunity to get to the bottom of InfoWars’ finances.

As a jury deliberates in Austin, Texas, over how much Jones must pay two parents for his false claims that the deadly shooting was a hoax, families of Sandy Hook victims who have sued Jones for defamation in that trial and others who have sued in Connecticut warned a bankruptcy judge in Houston that Jones might continue to pull assets from InfoWars parent company Free Speech Systems LLC while using its bankruptcy case to avoid paying court judgments in the defamation cases.

Marty Brimmage, an attorney for the Sandy Hook parents, told U.S. Bankruptcy Judge Christopher Lopez in Houston on Wednesday that Jones had told his audience that the bankruptcy would “tie up” any defamation judgment for years.

Judges in the Texas and Connecticut cases have already found Jones liable for defamation. The parents in the Texas trial are seeking

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