At 2:00 PM Eastern Time on January 23rd, the first hearing of the Genesis Capital bankruptcy case will be held, as per court filings. To begin with, judge Sean H. Lane of the United States Bankruptcy Court for the Southern District of New York will first decide whether to accept the reorganization plan under Chapter 11 bankruptcy.

Crypto lender Genesis and two of its subsidiaries have filed for bankruptcy protection, following recent market turmoil and being victim of the crippling crypto market conditions caused by the collapse of FTX in November.

Firms can put forward a reorganization plan to creditors under the provisions of Chapter 11 bankruptcy, while continuing to engage in business operations. A committee for unsecured creditors will also be appointed by the United States Trustee, which’ll have the right to demand that firms are consulted before going forward with major decisions or changes.

Sources:

https://www.coindesk.com/business/2023/01/20/genesis-claims-51b-in-liabilities-in-first-day-bankruptcy-filing/

https://cointelegraph.com/news/genesis-bankruptcy-case-scheduled-for-first-hearing