Seven-member committee formed to represent creditors in Genesis Global's bankruptcy case

Quick Take

  • A committee of unsecured creditors has been appointed for the Genesis Global  bankruptcy case.
  • The formation of a committee is an important step in bankruptcy proceedings.

A seven-member committee to represent unsecured creditors has been established in the U.S. bankruptcy case of Genesis Global.

The unsecured creditor committee will serve as a voice for creditors in court. William Harrington, a representative for the U.S. Trustee, appointed the committee, according to a Feb. 3 filing. The U.S. Trustee is an office within the Justice Department that represents the government in bankruptcy proceedings and helps formalize committees.

Who are Genesis's creditors?

Genesis Global is the lending arm of trading firm Genesis. It filed for U.S. Chapter 11 bankruptcy protection on Jan. 20. The filing outlined a list of its top 50 unsecured claims, totaling more than $3.6 billion. Some of the biggest claims — including one of nearly half a billion dollars — are attached to entities whose identities have been redacted. They mostly belong to individual creditors, a person familiar with the matter previously told The Block.

The claims featured several high-profile crypto firms, including $30 million owed to Plutus Lending, a division of the crypto platform Abra, and $53 million to VanEck's New Finance Income Fund.

Who is on the committee?

Some of the creditors from the top 50 unsecured claims list also feature on the newly formed committee, including Mirana and Digital Finance Group.

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