Genesis Global Holdco and its two lending business subsidiaries, Genesis Global Capital and Genesis Asia Pacific, voluntarily filed Chapter 11 bankruptcy filings with the U.S. Bankruptcy Court for the Southern District of New York. The filing does not include Genesis’ other subsidiaries involved in derivatives, spot trading and custody businesses, as well as Genesis Global Trading, which will continue to engage in customer trading businesses.
Genesis said a committee will oversee all aspects of the restructuring; with more than $150 million in cash on hand, it will provide ample liquidity to support its ongoing business operations and facilitate the restructuring process. Loan redemptions and new loan issuance will remain suspended, and claims will be handled through Chapter 11 bankruptcy proceedings. Genesis and its advisors will continue to evaluate various options to advance the process of reaching a global solution.
Moelis & Company is serving as the company’s financial advisor. Cleary Gottlieb Steen & Hamilton LLP is serving as legal advisor. Alvarez & Marsal is serving as restructuring advisor.
According to their respective bankruptcy filings, Genesis Global Capital estimates that the company has more than 100,000 creditors, its assets are estimated to be worth between $1 billion and $10 billion, and its liabilities are between $1 billion and $10 billion. Genesis Global Holdco estimates that its assets are worth between $100 million and $500 million, and its liabilities are between $100 million and $500 million. Genesis Asia Pacific estimates that both its assets and liabilities are worth between $100 million and $500 million. (Businesswire)