Genesis taps restructuring expert in fight to avoid bankruptcy

It is understood that Moelis & Company has been engaged to help the struggling loan company explore all possible options.

Cryptocurrency lending firm Genesis Global Capital has reportedly hired a restructuring advisor to explore all possible options, including but not limited to possible bankruptcy.

It is understood that the company has hired investment bank Moelis & Company to explore options, while people familiar with the situation have stressed that no financial decision has been made and that it is still possible for the company to avoid filing for bankruptcy, according to a November 22 New York Times article.

Interestingly, Moelis & Company was also one of the companies engaged by Voyager Digital after suspending withdrawals and deposits on July 1 to explore "strategic alternatives".

Days later, Voyager Digital filed for Chapter 11 bankruptcy with the Southern District of New York Court as part of a reorganization plan that would ultimately "return value to customers ".

However, a spokesperson for Genesis recently told Cointelegraph that it has no "immediate" plans to file for bankruptcy after a November 21 Bloomberg report suggested otherwise.

“We do not intend to file for bankruptcy anytime soon. Our goal is to resolve the current situation in a consensual manner without the need for a bankruptcy filing. Genesis continues to have constructive conversations with creditors,” the spokesperson said.

It is understood that Genesis is seeking between $500 million and $1 billion from investors to cover a shortfall that ultimately resulted from "unprecedented market turmoil" and the fall of the exchange of crypto FTX.